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Mitsubishi UFJ (MUFG), Binance to Launch Stablecoin in Japan
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Mitsubishi UFJ Financial Group, Inc. (MUFG - Free Report) , through its trust arm, Mitsubishi Trust Bank, has collaborated with Binance to offer a new stablecoin in the Japan market and the wider global cryptocurrency ecosystem.
The digital currency will be built on the Progmat Coin platform. MUFG developed the Progmat blockchain tokenization platform, which also includes the Progmat Coin stablecoin platform. The platform adheres to Japan's strict regulations on stablecoin issuance and management.
At present, MUFG, Binance and Progmat are jointly studying to aid the launch of this stablecoin. The new stablecoin will be tied to the Japanese yen and incorporate foreign currencies, such as the U.S. dollar. This will create a digital currency that can carry out transactions in yen and other strong currencies like the U.S. dollar.
Amid the continuously evolving cryptocurrency environment, the new stablecoin plays a crucial role in Binance's partnership with the Japan market.
Moreover, the new stablecoin is likely to diversify financial services in Japan and increase market competitiveness. The development comes as Japan's financial sector expects an increase in stablecoin offerings linked to legal tender, like the yen and the U.S. dollar, after 2024. Mitsubishi Trust Bank is also considering issuing the needed certifications to approve the same.
In September, the MUFG stablecoin issuance platform was reported to be joined by one of Japan's major banks, Mizuho Financial Group.
Markedly, stablecoins reduce the risk of failures as they are based on blockchain technology, wherein payments and order deliveries can be recorded in a secure and decentralized manner. Hence, it can be used in trade settlement.
Business clients can use stablecoin issued by financial institutions denominated in yen or dollars, which are backed by legal currency deposits. When they trade with U.S. companies, they can send funds through blockchain networks.
Shares of MUFG have gained 21.9% on the NYSE over the past three months compared with the industry’s growth of 0.4%.
Image Source: Zacks Investment Research
Currently, MUFG carries a Zacks Rank #3 (Hold).
Stocks to Consider
A couple of better-ranked stocks from the same industry are BBVA USA Bancshares, Inc. (BBVA - Free Report) and HSBC Holdings (HSBC - Free Report) .
BBVA’s current-year earnings estimates have been unrevised over the past 30 days. BBVA’s shares have gained 5.2% over the past three months. The company currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for HSBC’s current-year earnings has been revised marginally upward over the past 30 days. Over the past three months, HSBC’s share price has increased 1%. The company currently sports a Zacks Rank #1.
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Mitsubishi UFJ (MUFG), Binance to Launch Stablecoin in Japan
Mitsubishi UFJ Financial Group, Inc. (MUFG - Free Report) , through its trust arm, Mitsubishi Trust Bank, has collaborated with Binance to offer a new stablecoin in the Japan market and the wider global cryptocurrency ecosystem.
The digital currency will be built on the Progmat Coin platform. MUFG developed the Progmat blockchain tokenization platform, which also includes the Progmat Coin stablecoin platform. The platform adheres to Japan's strict regulations on stablecoin issuance and management.
At present, MUFG, Binance and Progmat are jointly studying to aid the launch of this stablecoin. The new stablecoin will be tied to the Japanese yen and incorporate foreign currencies, such as the U.S. dollar. This will create a digital currency that can carry out transactions in yen and other strong currencies like the U.S. dollar.
Amid the continuously evolving cryptocurrency environment, the new stablecoin plays a crucial role in Binance's partnership with the Japan market.
Moreover, the new stablecoin is likely to diversify financial services in Japan and increase market competitiveness. The development comes as Japan's financial sector expects an increase in stablecoin offerings linked to legal tender, like the yen and the U.S. dollar, after 2024. Mitsubishi Trust Bank is also considering issuing the needed certifications to approve the same.
In September, the MUFG stablecoin issuance platform was reported to be joined by one of Japan's major banks, Mizuho Financial Group.
Markedly, stablecoins reduce the risk of failures as they are based on blockchain technology, wherein payments and order deliveries can be recorded in a secure and decentralized manner. Hence, it can be used in trade settlement.
Business clients can use stablecoin issued by financial institutions denominated in yen or dollars, which are backed by legal currency deposits. When they trade with U.S. companies, they can send funds through blockchain networks.
Shares of MUFG have gained 21.9% on the NYSE over the past three months compared with the industry’s growth of 0.4%.
Image Source: Zacks Investment Research
Currently, MUFG carries a Zacks Rank #3 (Hold).
Stocks to Consider
A couple of better-ranked stocks from the same industry are BBVA USA Bancshares, Inc. (BBVA - Free Report) and HSBC Holdings (HSBC - Free Report) .
BBVA’s current-year earnings estimates have been unrevised over the past 30 days. BBVA’s shares have gained 5.2% over the past three months. The company currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for HSBC’s current-year earnings has been revised marginally upward over the past 30 days. Over the past three months, HSBC’s share price has increased 1%. The company currently sports a Zacks Rank #1.