Mitsubishi UFJ’s trust banking arm, Japan’s largest bank by assets, intends to use blockchain technology for securities trading, with the stablecoin acting as a payment instrument.
According to a Nikkei report, Mitsubishi UFJ Trust plans to issue a stablecoin as a means of payment to enable instant settlement of securities transactions.
Mitsubishi UFJ, Japan’s largest bank by assets, intends to use blockchain technology for securities trading and the stablecoin as a payment instrument.
Mitsubishi UFJ wants to speed up the settlement process, which currently takes a few days, and save millions of dollars by making it instantaneous. In this regard, it will be similar to JPM Coin, a U.S. banking giant’s initiative aimed at speeding up wholesale payments such as bond transactions.
The Japanese yen will be used to back the stablecoin.
Under new legislation aimed at limiting the issuance of such digital currencies by private companies, banks and other financial institutions will be able to issue stablecoins next year.