HomeNEWSCZ underlines importance of stablecoins as Binance Japan partners MUTB

CZ underlines importance of stablecoins as Binance Japan partners MUTB


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Today, Binance CEO, Changpeng Zhao highlighted the importance of stablecoins via his X (formerly Twitter) account. The submission surfaced when the Binance boss posted a report that indicated a collaboration that involves the Japanese organ of the cryptocurrency exchange. In his submission, CZ indicated that the introduction of more stablecoins will create more fiat liquidity. 

As a prominent personality in the industry, CZ’s submission caught the attention of some crypto enthusiasts. The post generated a host of mixed reactions as a part of the crypto community argued that more fiat liquidity sponsored by the introduction of stablecoins would ensure price stability. Consequently, they opined that the stability of the crypto market will foster mainstream adoption. Some members of the crypto community submitted that Japan is growing to become a good destination for the virtual assets sphere. 

Meanwhile, in another post, CZ highlighted that the collaboration of Binance Japan with Mitsubishi UFJ Trust and Banking Corporation (MUTB) will create more stablecoins. In the early hours today, reports surfaced that the Japanese arm of Binance partnered with the largest banking group in the country to issue fiat-pegged stablecoins. To actualize this pursuit, the two partners through a joint press statement revealed that they’ve commenced a study. 

The partners will explore the possibility of issuing stablecoin pegged to fiats like the Japanese Yen and other International currencies. Similarly, the collaboration will leverage the “Progmat Coin” platform. This platform is led by Mitsubishi’s trust bank and it is specifically designed for stablecoin issuance. Likewise, the issuance of the new stablecoins will be targeted at accelerating the mass adoption of Web3 in the Asian country. 

How Binance has focused on stablecoin issuance after setback with BUSD

However, Binance and some crypto companies have intensified efforts to introduce more stablecoins. This is in reaction to how a regulatory order stopped Paxos, the issuer of Binance’s BUSD from minting more of the stablecoin. The issue sparked unrest in the crypto community owing to the relevance of the stablecoin as of then. 

Ever since, Binance has drummed more support for stablecoins. Now, the collaboration with MUTB is a step towards actualizing the emergence of new stablecoins. For Japan, the adjustment of the country’s stablecoin law which took effect last June is gradually bearing good results. 

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David Idowu
David Idowu
David Idowu is a crypto reporter and trader with wealthy years of experience. He believes that blockchain technology has numerous opportunities that are begging for proper utilization. Away from work, David is either reading about World Politics, History or Tech Innovations.

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