Editor's PiCK
Japan's three major banks push to jointly issue yen stablecoin
Summary
- Japan's three mega-banks are reportedly pushing to jointly issue a yen stablecoin.
- The stablecoin is expected to be used primarily for in-house funds settlement, and its use for remittances is also being considered.
- The move is said to be aimed at responding to the spread of dollar-pegged stablecoins, and coincides with efforts to improve Japan's financial infrastructure.
Japan's three mega-banks, Mitsubishi UFJ Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation, are reportedly set to jointly issue a stablecoin pegged to a fiat currency.
On the 18th, Japan's Nikkei and major media reported that the banks are discussing plans to issue a standardized stablecoin. They will first issue a yen-denominated coin and later plan to issue a dollar-denominated one.
Initially, it is expected to be used for Mitsubishi Corporation's internal funds settlement. A Mitsubishi Corporation official said, "We are considering using it for remittances."
Nikkei analyzed that the move is also driven by concerns that US-led dollar-pegged stablecoins could be converted in Japan.
Japan's Financial Services Agency in August approved fintech firm JYPC's registration as a funds transfer operator for issuing stablecoins, kickstarting improvements in financial infrastructure.
Lee Hui-kyung reporter ddehg@wowtv.co.kr
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
