Mitsubishi UFJ, a major Japanese bank, is partnering with Bitbank, one of Japan's largest crypto exchanges, to create a stablecoin-powered platform for crypto firms.

This initiative follows the Japanese government's approval of legislation allowing traditional financial institutions, including banks, to launch and operate stablecoins.

The project aims to establish a stablecoin-powered "international payment system" scheduled to launch in 2024, with stablecoins pegged to the Japanese yen and the United States dollar.

Mitsubishi UFJ is collaborating with Web3 provider Ginco and its stablecoin affiliate, Progmat, to build the platform, promoting interoperability among various blockchain protocols.

The bank is seeking the participation of other domestic and international crypto exchanges in the project, with Cumberland DRW and Melcoin already on board.

The platform is expected to enhance efficiency and reduce fees for token exchanges with overseas businesses.

Mitsubishi UFJ has invested in stablecoin development, notably through its Progmat affiliate, which has gained support from major Japanese companies.

The project will introduce yen-pegged stablecoin "XJPY" and dollar-pegged stablecoin "XUSD," facilitating cross-industry stablecoin-powered settlements and reducing reliance on conventional bank transfers with limited operating hours.
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