Mitsubishi UFJ Trust is set to issue a stablecoin as a means of payment to enable instant settlement of securities transactions, according to a report by Nikkei.
- The trust banking arm of Mitsubishi UFJ, Japan's largest bank by assets, is planning to use blockchain technology for securities trading and set up the stablecoin as a payment instrument.
- Mitsubishi UFJ is looking to expedite the settlement process, which now takes a couple of days, saving millions of dollar by making it instantaneous. In this sense, it will be similar to JPM Coin by U.S. banking giant JPMorgan, which is focused on speeding up wholesale payments such as bond transactions.
- The stablecoin will be pegged to the Japanese yen.
- Banks and other financial institutions will be allowed to issue stablecoins next year under new legislation designed to limit the issuance of such digital currencies by private companies.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.