The trust banking arm of Mitsubishi UFJ, Japan’s largest bank by assets, plans to use blockchain technology for securities trading with the stablecoin acting as a payment instrument.
Mitsubishi UFJ Trust is set to issue a stablecoin as a means of payment to enable instant settlement of securities transactions, according to a report by Nikkei.
The trust banking arm of Mitsubishi UFJ, Japan’s largest bank by assets, is planning to exploit blockchain technology for securities trading and use the stablecoin as a payment instrument.
Mitsubishi UFJ is looking to expedite the settlement process, which currently takes a couple of days, saving millions of dollar by making it instantaneous. In this sense, it will be similar to JPM Coin by U.S. banking giant JPMorgan, which is focused on speeding up wholesale payments such as bond transactions.
The stablecoin will be pegged to the Japanese yen.
Banks and other financial institutions will be allowed to issue stablecoins next year under new legislation designed to limit the issuance of such digital currencies by private companies.