Japan Crypto News: 3 Major Banks To Launch Yen-Backed Stablecoin

Japan Crypto News Today: Yen-Backed Stablecoin Launch Ahead?

In the latest Japan crypto news, the country’s three major banking institutions, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group, are joining hands to launch a yen-backed stablecoin. Recent reports suggest that the banking giants are building a unified infrastructure that will allow corporate clients to issue and transfer stablecoins across banks using common technical standards.

Japan Crypto News: Major Banks United to Launch Stablecoin

A recent report from Nikkei states that three of Japan's largest banks, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group, are planning to launch a stablecoin pegged to the yen in collaboration with each other. To facilitate easy use, the three banks plan to create a common framework to allow their corporate clients to issue and transfer stablecoins across institutions, with standardized protocols. The original coin will initially be based on yen currency until a dollar-pegged version emerges.

This collaboration could help foster crypto adoption in the country with a stablecoin linked to significant banks that embrace adoption compliant with Japanese rules. It would allow for a safer way to transact digitally, create easier pathways to conduct payments, and drive institutional confidence. With a unified infrastructure in place and government support, Japan is positioning itself as a more innovative stablecoin focal point.

Notably, this development follows the Japanese government's announcement of stricter regulations on its cryptocurrency endeavors. In the latest development, the FSA has announced a ban on insider trading and confirmed plans to criminalize and penalize unfair trading practices.

Sony Bank to Issue US Dollar-Backed Stablecoin

Another major Japan crypto news is the Sony Bank’s potential launch of a US Dollar-backed stable token. The organization has submitted an application for a national trust charter to the Office of the Comptroller of the Currency (OCC). The bank intends to develop regulated digital asset offerings in the United States.

The proposed monetary institution, which is called Connectia Trust, N.A., would function as a trust company that serves a variety of crypto-related functions. These would consist of issuing stablecoins backed by U.S. dollars, providing digital asset safekeeping for clients, and managing assets for Sony's affiliated companies.

If approved, Sony Bank would be established as one of the first major global technology institutions to provide a federally-regulated crypto bank in the United States. The application to the OCC reinforces a continued divergence, where both traditional banking institutions and crypto-native providers audibly pursue federal charters for regulated digital asset offerings.