Japan’s three largest banking groups have received the greenlight from the FSA for a stablecoin issuance and cross-border payments project.
According to the press release, the banks’ project will involve joint stablecoin issuance and advanced cross-border payments, with both set to receive support from the FSA. Digital asset platform Progmat, founded by Mitsubishi UFJ, will provide the infrastructure and technological support for the proof-of-concept. “The three banks considering joint issuance will define requirements and establish evaluation criteria to build a concrete structure,” said MUFG.
A stablecoin is a cryptocurrency that has its price pegged to a fiat currency. Currently, the most popular assets of this type are tied to the US dollar (USD). The three big banks are expected to issue a stablecoin backed by the Japanese yen (JPY).
MUFG’s press release noted that blockchain-based payments and use of tokenized deposits and stablecoins are being explored both domestically and overseas. So this proof-of-concept from the banks will serve as a testing ground to accumulate practical knowledge related to joint stablecoin issuance.
Elsewhere in Asia, Hong Kong approved its legislature on these fiat-tied tokens earlier this year, and big names like Standard Chartered in its joint venture are on the waiting list for an issuer license.
The euro-pegged token, which aims to be fully compliant with the European Union’s Markets in Crypto-Assets Regulation (MiCAR), seeks to provide a real alternative to the USD-heavy stablecoin market.
Bitcoin has been facing bearish pressure recently, which has taken its price to the $100,000 level, down over 8% on the weekly timeframe.
