Binance is expanding its presence in overseas markets despite ongoing legal battles with regulators in key jurisdictions. The crypto exchange is now preparing to launch stablecoins pegged to the US dollar, euro, and Japanese yen in Japan by 2024.
For this initiative, Binance has partnered with Mitsubishi UFJ Financial Group’s trust banking unit, MUFG. The two companies are working together on issuing stablecoins in Japan’s growing crypto industry.
The Japanese government passed a law in June enabling licensed firms to issue stablecoins. This has prompted companies like Orix Corp to consider launching their own stablecoins, which offer benefits like faster payments and settlements. MUFG has also held talks with various entities about using its Progmat blockchain platform for stablecoins pegged to foreign currencies.
Tatsuya Saito, MUFG’s vice president of products, estimates Japan’s stablecoin market could reach ¥5 trillion ($34 billion), around a quarter of the estimated current global market size.
To proceed with the stablecoin issuance plan, Binance must obtain a license in Japan as an electronic settlement methods transaction business. Once launched, users may be able to use the stablecoins for crypto trading and potentially payment services, according to MUFG’s Takeshi Chino.
Binance continues to engage with regulators worldwide to bring clarity to crypto rules, despite ongoing legal issues in markets like the US, Australia, and the UK. The exchange recently reopened operations in Belgium after a nearly 3-month regulatory pause.
While Binance had considered delisting stablecoins in Europe by June 2024 due to upcoming MiCA rules, CEO Changpeng Zhao clarified they already have European partners and plan to launch a fully compliant stablecoin. This demonstrates Binance’s commitment to expanding its products and services globally within local regulatory frameworks.