MUFG & Mizuho join forces on stablecoins

Last week’s news had Mizuho join Mitsubishi UFJ Trust & Banking’s “Progmat” token issuance platform, which will be established as a stand-alone entity shortly. Progmat, which is designed to handle security tokens, utility tokens and stablecoins, has established itself as the leading platform for token issuance in Japan to date.

Previously, however, towards the end of August, Mizuho announced that its J-Coin payments platform would now integrate MUFG Bank accounts. So clearly, there is some give-and-take going on between the two megabanks, especially since Mizuho also announced at the same time that it would support connectivity with “COIN+”, a cashless payments joint venture between Recruit and MUFG Bank.

Users of the J-Coin app can now select MUFG Bank and link their bank account(s) to send and receive money from members at participating banks free of charge, or make payments at more than 1.4 million participating stores.

Stablecoin regulation has been in effect since June this year, allowing banks, trust banks, and qualified electronic money transmitters to issue these, which will make for a very interesting playing field in the future. Given the scrutiny that will be inherent in the application process, the first regulatory approvals might come towards the end of the year at the earliest, more likely during the first quarter of 2024 (in time for the fiscal year starting in April).

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