Japanese Bank MUFG To Release Its Stablecoin This Year

Announcements, News | April 11, 2019 By:

Japan-based Mitsubishi UFJ Financial Group (MUFG), the world’s fifth-largest financial institution, will be putting its own cryptocurrency, MUFG Coin, into practical use later this year.

MUFG Coin, first announced in 2016, is a blockchain-based stablecoin pegged 1:1 to the Japanese yen. Since 2017, approximately 1,500 bank employees have participated in trialing MUFG Coin. In 2018, the bank announced that it will launch a ‎large-scale trial involving nearly 100,000 account holders in 2019.

In an interview with local media agency Asahi Shimbun, MUFG president Kanetsugu Mike confirmed that the bank is going to roll out the stablecoin later this year. Kanetsugu said that when MUFG coin becomes available to the public, customers will be able to use the coin to make mobile payments in restaurants, convenience stores and other shops, as well as make transfers to the accounts of other participants.

“I would like to offer unprecedented new value,” Kanetsugu said.

Earlier this year, MUFG partnered with cloud delivery platform Akamai Technologies to establish a joint venture, the Global Open Network, Inc. (GO-NET), which aims to provide a comprehensive set of services, including support for existing payment processing functions, pay-per-use, micropayments and other developing Internet of Things (IoT) enabled payment transactions.