Japan’s largest bank, Mitsubishi UFJ Trust (MUFJ), plans to issue a yen-pegged stablecoin in 2023 for instant settlement of securities transactions, according to Nikkei Asia.
- By accelerating the settlement process, Mitsubishi UFJ hopes to cut costs arising from settling securities transactions by fiat, which usually takes a few days to process.
- Japan’s Financial Services Agency (FSA) announced last December that only FSA-authorized financial institutions will be permitted to issue stablecoins. The move will take effect in spring next year.
- MUFJ will also explore further blockchain incorporation in areas such as securities trading.
- Blockchain allows fractionalization of assets, making it easier for retail investors to diversify into high-priced, less liquid assets such as corporate bonds and real estate.
- MUFJ has been promoting the use of blockchain-based securities in partnership with SBI and Daiwa Securities, Nikkei reported.