Catenaa, Saturday, April 12, 2025- Mitsubishi UFJ Trust and Banking, a subsidiary of Japan’s largest financial group, is on the verge of launching the nation’s first fiat-pegged stablecoin.
Reports from Yomiuri Shimbun and CoinPost confirm that the development of the stablecoin was completed by the end of 2024, with final adjustments now underway.
The stablecoin will initially be utilized in the carbon credits trading market, a sector the bank aims to revolutionize with low-cost, fast settlement transactions. Mitsubishi UFJ Trust’s CEO, Hiroshi Kubota, emphasized that the coin’s broader applications in trade settlements and other areas will be expanded at a later stage.
Kubota believes that stablecoins could significantly reduce the high fees associated with cross-border settlements, making them a key tool in enhancing the efficiency of financial transactions. The coin will be classified as an “electronic payment instrument” under Japan’s Payment Services Act.
The initiative, developed in partnership with Progmat and other affiliates, positions Mitsubishi UFJ as a leader in Japan’s rapidly evolving stablecoin space. As other financial giants like Sumitomo Mitsui Financial Group prepare to launch similar products, the country is set to become a hub for stablecoin innovation.
This move comes as part of a broader effort by Mitsubishi UFJ to diversify its business operations, with plans to generate at least ¥30 billion ($206 million) in gross profits by 2034, partly through stablecoin projects and partnerships with startups.
