Japanese Banking Giant MUFG Plans for Issuing Stablecoins
Starting this month from June 1, Japan’s stablecoin law came into effect allowing the nation’s licensed banks, trust companies, and registered money transfer agents to issue these cryptocurrencies. As said, MUFG is talking to multiple parties for using its blockchain platform Progmat, in order to mint stablecoins linked to foreign currencies, such as the US Dollar. advertisement In an interview with Bloomberg, MUFG’s Vice President of Product Tatsuya Saito said: “Issuers and users can feel safe using stablecoins” now the legislation is in effect. Stablecoins play a crucial role in the cryptocurrency industry, providing investors with a reliable asset to hold funds during trades involving more volatile tokens. Designed to maintain a stable value, usually pegged to $1, stablecoins are often backed by reserves such as cash and bonds. Currently, approximately $130 billion worth of stablecoins are in circulation. As a response to their in...