Mitsubishi UFJ Financial Group (MUFG), the main banking institution in Japan, is in talks with major companies to launch the world's largest digital stablecoins on its blockchain platform.
The move follows the enactment of Japan's Stablecoin Law, which prohibits foreign companies from issuing or distributing such digital currencies within the country. The law allows only banks, money transfer services and trust companies licensed in Japan to issue these tokens.
Tatsuya Saito, MUFG's vice president of products, said the bank is in talks with various companies about issuing its own stablecoins on the Progmat platform. He did not disclose which corporations are involved, but stressed that it will be about third-party stablecoins and not about creating its own token.
"If this law is implemented, it will give companies issuing stablecoins and their users the freedom to deal with such assets," said the MUFG vice president.
In particular, he noted that stablecoins issued on Progmat can be used both domestically and internationally, giving users more security as it is a licensed platform.
Mitsubishi Banking Group introduced the Progmat platform early last year.