As we all know
that Bitcoin transactions have become the new sensation in Japan.
There is no dearth of leading financial companies who are gearing
towards offering solutions to preserve their market share. MUFG, the
leading bank in the country is all set to launch its own exchange, a
pegged cryptocurrency, as well as, Bitcoin separated accounts for
clients of other exchanges.
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| Cryptocurrency exchange development |
Everything You
Need To Know About MUFG Exchange & Pegged Coin
Mitsubishi UFJ
Financial Group, one of the largest banks in the world is planning to
launch its own cryptocurrency exchange. As per the latest reports,
MUFG has told the Financial Services Agency (JFSA) on the decision to
launch a cryptocurrency exchange. This shows how far the
cryptocurrency exchange development has come and very soon
launching an exchange will be on every business owner’s hit list.
The bank seems to
me working hard on issuing its own cryptocurrency anytime soon. As
per the current plan, it seems that by supervising the exchange where
people can trade this MUFG coin, the bank could overpower major
fluxes in its price so that it can be easily used for shopping,
remittances and settlements effectively.
The idea right
now is that the new cryptocurrency will be kept pegged at JP¥1,
however nothing is fixed. MUFG coin used to make secure transactions
in Japan, so once the cryptocurrency will be rolled out; traders can
use it for other purposes too.
One interesting
application is for it to be used in trading pairs on non-fiat
exchanges, backed by the biggest bank in Japan in place of Tether.
Bitcoin
Segregated Accounts
Reportedly, the
bank is working on another big service for Japanese crypto traders -
MUFJ Trust. It will keep client holdings in accounts which can be
directly linked to crypto exchanges but without sending the money to
their control. Like how segregated accounts are used to protect forex
traders, this can protect client funds at the bank in case the
company goes bankrupt. The service will also track accounts for any
suspicious activity which could get flagged for inspection.
The bank is expected to roll out its coin to a handful of customers
hoping they will participate in finding bugs as they make typical
retail purchases. It appears to roll out the coin by 2019. MUFG
Coin’s users in 2019 would first have to download the app,
converting fiat deposits. The token is designed for parity with
Japanese yen. When the project was hatched 3 years ago, one rationale
was to bring down transactions frictions with respect to remittances
and transfers, using a variation on peer-to-peer platforms to lower
costs.
Mitsubishi United
Financial of Japan Group (MUFG) boasts more than $2.5 trillion in
assets. Also, it ranks second in the world as a holding company and
is the biggest financial group in Japan. Regulators such as its
Financial Services Agency (FSA) introduced a half-dozen mandates
targeted at squashing sketchier alternative coins whereas protecting
the present market too.
With big banks
issuing their own coins, do you think it’s good for the ecosystem?
Let us know in comments section below.
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