Cryptocurrency Exchange Planned By Mitsubishi UFJ Financial Groupbr>
Japanese bank Mitsubishi UFJ Financial Group (MUFG), the largest bank in the country, is planning to launch its own cryptocurrency exchange this year.
According to local media reports, the bank has already notified the Financial Services Agency (FSA) on the decision to launch an exchange. MUFG is also planning to issue its own virtual currency: the “MUFG coin.”
The report indicates that by launching its own crypto exchange, the bank could suppress drastic fluctuations in the price of MUFG so it can be used for settlement and remittance. MUFG will make full preparations for the MUFG coins issuance, with plans to organize contests to generate ideas for business usage of the MUFG coins in March.
The new cryptocurrency will be kept pegged at around JP¥1, but not fixed in advanced so as to bypass regulations regarding issuing and transmitting such private money in the country. Users can use the MUFG coins, accessed from their smartphones, to pay for goods and services in a secure fashion.
Last month, the bank announced it will launch a service that will protect cryptocurrency holders should the exchanges they use fail. Called Mitsubishi UFJ Trust, it will offer a service to keep exchange customers’ cryptocurrency holdings separate from the entrusting exchange’s assets. MUFG said this will make it the first trust arrangement of its kind in the world. The bank is looking to launch this service in April.