Japan’s Major Banks Collaborate to Launch Yen-Pegged Stablecoin
Japan's major banks, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group, are collaborating to integrate stablecoins into the mainstream financial system. They plan to issue digital currencies pegged to the yen, with a future extension to the US dollar.
A Unified Digital Payment System
- The banks will develop a shared framework for corporate clients to issue and transfer stablecoins using common standards.
- The initial launch will introduce a yen-pegged token aimed at streamlining settlements between companies and banks.
- A dollar-backed version will follow, enhancing cross-border payment options.
- With over 300,000 corporate partners, the banks expect rapid adoption.
Stablecoins, existing only digitally and backed by reserves, offer a stable value and signal significant adoption by traditional finance.
Sony Bank Joins the Race
- Sony Bank's US subsidiary, Connectia Trust, has applied for a national trust bank charter to issue a dollar-pegged stablecoin in the US.
- This move follows the GENIUS Act, which provides a regulatory framework for stablecoins.
- The Bank of Japan's potential interest rate increase to 0.75% reflects confidence in domestic growth.
The gradual tightening of monetary policy might strengthen the yen and improve global liquidity, potentially benefiting digital assets like Bitcoin .
Pro-Crypto Prime Minister
- Sanae Takaichi, Japan's new Prime Minister, supports low interest rates, tax cuts, and economic stimulus to counter yen weakness.
- Takaichi endorses cryptocurrency regulation and innovation, fostering a favorable environment for digital assets.
Her leadership is expected to boost domestic crypto enthusiasm and create a friendlier setting for digital assets.