Japan’s largest bank, Mitsubishi UFJ, is said to be in talks with the firm behind the popular global stablecoin and others to issue such tokens through the bank’s blockchain platform.
Japan’s stablecoin law, one of the first legislation in a major economy, came into effect on June 1, which effectively means that only licensed banks and related financial companies in the country can issue tokens.
MUFG vice president of product Tatsuya Saito said the bank is in discussions with various parties to use its blockchain platform Progmat to create stablecoins pegged to foreign currencies, including the U.S. dollar, for global use.
He said that now that Japan’s legislation is in effect, issuers and users will have a sense of security when using stablecoins. However, he declined to say which stablecoin parties he is negotiating with.