Japan’s Largest Bank Opening Cryptocurrency Exchange and ICO, MUFG Coin

All News All News Except Press Releases Blockchain Crypto ICO

Mitsubishi UFJ Financial Group (MUFG), considered among the largest financial institutions in Japan has announced plans to launch its own Bitcoin and crypto exchange that will target retail and institutional investors. In addition, the company plans an ICO.

Mainichi Shimbun, a leading newspaper in the country reported that MUFG was putting resources and a team of experts in place to oversee the project, targeting the local cryptocurrency market.

The Japanese government and its financial services agency started a national licensing program to regulate cryptocurrency exchanges. Since then, eleven companies have obtained licensure in Japan as cryptocurrency exchanges and financial service providers. Another 17 crypto exchanges are under review while several others have received approval.

MUFG is planning to gather the resources and talents required to open a crypto exchange and file its application with the Japanese FSA.  Many financial institutions are showing interest in cryptocurrency and the entry of such financial service providers will give traders a wider platform to secure their cryptocurrency portfolio.

Mitsubishi UFJ Financial Group intends to launch their own crypto token that will hedge its value to the Japanese Yen. The MUFG will act as a reserve for the Yen and produce enough tokens to match the Japanese Yen’s price. MUFG’s token is planned to cover traders against periods of extreme market volatility during major corrections.

The token will resemble Tether or USDT which protects the token’s value to US dollar prices. MUFG’s trust banking arm, Mitsubishi UFJ Trust and Banking will create a cryptocurrency safety net that will be sold in exchanges. It will record and analyze all transaction and halt any suspicious looking transactions for further investigation. The exact timeframe for the launch isn’t clear as the bank didn’t offer more information to media outlets.

The ongoing threats and FUD on the potential banning of cryptocurrency in leading markets may have scared investors away, but looking at developments like the entry of Mitsubishi UFJ Financial Group, its proof that it’s an idea whose time has come. The entry of new businesses means no threats or restrictions that will stop the movement. This announcement comes when the cryptocurrency market has lost about $200 billion USD or close to one-third of its value. However, investors within the crypto community have dispelled fears we are seeing the end of Bitcoin and cryptocurrency Initial Coin Offerings (ICOs).

When news came out that China shut down its local exchanges in September 2107, there was a 50% slump in Bitcoin but the prices rebounded eight times to reach a high of almost $20,000. While the cryptocurrency is now valued at about $11,000, Bitcoin and other crypto coins will experience a whirlwind and rebound.

Leading cryptocurrencies like Bitcoin, Ripple and Ethereum have experienced a dramatic fall in recent days but an expert, Robert Wolf, a former UBS America CEO says there is nothing to worry about. Wolf determined that “cryptocurrency is here to stay, it’s an asset class.” MUFG isn’t the only financial institution that’s investing in crypto; Goldman Sachs Group Inc. also plans to launch a cryptocurrency trading desk. Goldman spokesman Michael DuVally said they were exploring possibilities “In response to client interest in digital currencies.”

Facebook Comments