World’s Fifth Largest BankSet to Launch Cryptocurrency Exchange and Bitcoin Trust
At a time when the cryptocurrency world is going through various attacks from governments all around the world, Japan is doing its possible best to support the continued existence of the crypto ecosystem. Japan’s largest bank and fifth biggest bank in the world, Mitsubishi UFJ Financial Group, Inc., (MUFG) is finalizing plans to launch its exchange.
According to Japanese news sources, MUFG has made its intentions of floating a crypto exchange known to the Japan Financial Services Agency.
The MUFG is also looking to create its cryptocurrency but understands the advantage of first establishing an exchange to trade MUFG coins. This platform would help in stabilizing the price of the coin as well as make it a preferred currency for shoppers to clear settlements and pay outstanding bills.
The bank looks to peg the price of the MUFG coin at one Japanese yen, but not fixed in advance to avoid regulations concerning the issuance and transmission of such private currency in Japan. While the primary focus of the Japanese bank is to enable the Japanese people and merchants carry out stable transactions, once the cryptocurrency is made available to crypto traders globally, it could also serve other useful purposes.
One area the MUFG coin could come in handy is in its use in trading pairs on non-fiat exchanges, like USTD.
The bank is also looking to create a trust for cryptocurrency traders based in Japan. The MUFJ Trust will keep digital assets of clients safe in accounts linkable to exchanges, but not controllable by these exchanges. It would operate in the same way that forex brokers create segregated accounts to protect their traders.
The MUFJ trust will keep investors funds safe at the bank in case of unforeseen, yet likely, adverse events that can occur in the sector. The trust will also monitor all transactions on clients’ accounts, and any suspicious activity will be immediately flagged for further inspection before being processed.
The Japanese firm will first use bitcoin to test the waters before adding other altcoins in future. The service is scheduled to kick-off in April 2018, or sooner if the JFSA green lights the venture and recognizes bitcoin as an asset placeable in a trust. Such an undertaking would also be a massive step forward for the entire cryptocurrency community as it would further legitimize digital currencies.
The CEO of Bitbank, Noriyuki Hirosue opined that despite the fact that users of the trust will be charged a fee, it would in no doubt be of immense benefit. In his words:
“Customers will feel peace of mind knowing that a trust bank is managing their assets.”
Japan occupies the frontline in the cryptocurrency ecosystem. The nation was the first to make bitcoin a legal tender and is now on the verge of making more history in being the first nation to support the establishment of a cryptocurrency trust.