The general manager of Binance Japan described stablecoins as the "glue" between the real economy and the blockchain in an interview with CoinDesk Japan.

Takeshi Chino, speaking ahead of Binance's re-entry into Japan via its acquisition of regulated crypto exchange Sakura Exchange BitCoin, described how volatility of crypto prices may lead to profit opportunities but will not help stimulate broader demand for cryptoassets.

"We believe that stablecoins will serve as the glue between the real economy, the blockchain economy, and the Binance ecosystem," Chino said. "When you do something stably, price fluctuations become noise."

Stablecoins are pegged to the value of traditional assets, usually fiat currencies such as the U.S. dollar, and therefore are designed to be free of the price swings that often afflict cryptocurrencies like bitcoin (BTC).

Rival crypto exchanges Coinbase (COIN) and Kraken have both withdrawn from the Japanese market in the last six months, citing "market conditions" as the reason.

Chino said crypto winter may be hampering the traditional model of a crypto exchange business, given how lower valuations and trading volume will diminish revenue from fees. He said that Binance's vision for "freedom of money" through crypto and blockchain technology supersedes the exchange business model and the present market conditions.

"The ecosystem has many facets," he said. "For example, we will provide various services from a different angle to finance, and we will also provide various IP (intellectual property) contents in the form of Web3."

Binance's move back into Japan this summer will come two years after the exchange received warning from the country's Financial Services Agency (FSA) that it was operating there without permission.

Chino described how one of the keys to gain regulatory acceptance in Japan is ensuring understanding of how its products work in order to gain trust, something he admits may be a challenge.

"We are confident about our product and technology, but we are still a long way off in terms of whether the company Binance and its activities are properly understood," he said.

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