Three major Japanese banks are considering jointly issuing stablecoins using a common system, sources familiar with the plan said, in a bid to promote the use of cryptocurrency in traditionally cash-oriented Japan.
Trading house Mitsubishi Corp is expected to use the stablecoins to be issued by MUFG Bank, Mizuho Bank and Sumitomo Mitsui Banking Corp, the sources said.
The three see a system developed by fintech startup Progmat Inc as the most viable choice, the sources said, adding that they plan to carry out a feasibility study.
Stablecoins are pegged to tangible assets such as fiat currencies and are considered less volatile than other types of digital money, like Bitcoin.
Cross-border transfers using stablecoins on blockchain can make transactions more secure while saving time and reducing costs, according to industry sources.
MUFG Bank has also been considering jointly issuing stablecoins pegged to the currencies of the Group of Seven advanced economies with major U.S. and European banks, including Goldman Sachs and BNP Paribas.
