The Mitsubishi UFJ Financial Group (MUFG) has announced that it will launch a stablecoin this year. As reported by Cointelegraph Japan, the banking group will release the MUFG Coin later this year.
Stablecoin With Yen 1:1 Yen Backing
MUFG is the largest financial group in Japan and will likely be the first Japanese bank to emit its own digital currency. In the case of MUFG, it is a stablecoin, that the bank will back in 1:1 ration with Japanese yen.
Reportedly, the bank will design the stablecoin to replace fiat money in certain cases. The clients of MUFG can download an application that converts their funds into the stablecoin. According to to Cointelegraph Japan, around 1500 employees have participated in the test phase of MUFG Coin since 2017.