CoinDesk Analysis Team
CoinDesk
Three Japanese banks are to experiment with stablecoin payments as they work to implement a system that meets legal requirements, according to a Thursday press release.
Tokyo Kiraboshi Financial Group, Minna no Bank and The Shikoku Bank will use a system developed by GU Technologies, a Web3 infrastructure company, on the Japan Open Chain, a public blockchain fully compatible with Ethereum that complies with Japanese law.
"We will conduct an experiment to confirm that each bank can issue its own stablecoin that can be used in Ethereum wallets such as MetaMask while complying with the Payment Services Act," the companies said.
Japan has been moving toward allowing stablecoins. Following the collapse of multibillion-dollar algorithmic stablecoin issuer Terra in 2022, parliament passed a set of stablecoin-specific rules focused on investor protection. The government also plans to allow stablecoins issued outside the country to be listed on local exchanges. Additionally, new rules to be implemented in June will allow Japanese exchanges to apply for a special license to trade stablecoins.
The proof-of-concept for the issuance of stablecoins "backed by assets" through demonstration experiments involving local governments and private companies has already begun, according to the announcement.
All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.
Recommended Content
Editors’ Picks
These 5 altcoins are rallying ahead of $16 billion FTX creditor payout
FTX begins creditor payouts on January 3, in agreement with BitGo and Kraken, per an official announcement. Bonk, Fantom, Jupiter, Raydium and Solana are rallying on Thursday, before FTX repayment begins.
ETH could see new all-time high in 2025 as blobs top burn leaderboard
Ethereum (ETH) is down 1% on Tuesday following a weeklong consolidation of the general crypto market. The top altcoin could be set for a bullish 2025 if blobs continue their recent trend of burning high amounts of ETH.
PEPE Price Prediction: Last-minute $121M whale demand sparks 1,500% 2024 rally
PEPE price surged 25% within the last 24 hours, decoupling from the broader crypto market’s year-end volatility. With whales spotted entering last-minute buying frenzy, can PEPE breach the $0.000025 resistance?
These three narratives could fuel crypto in 2025, experts say
Crypto narratives like Real-World Asset tokenization, Artificial Intelligence and Bitcoin as a treasury asset could gain relevance in 2025. Experts say meme coins could emerge as a key vertical next year and strike a cautious note about Solana and XRP ETFs.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.