Binance Japan Inc. aims to introduce these three stablecoins, with the possibility of adding more in 2024, through its partnership with the trust banking arm of Mitsubishi UFJ Financial Group, according to Takeshi Chino, the unit’s general manager. The two companies have already begun joint studies on the issuance of these stablecoins, as stated in a press release.

In June, Japan legalized stablecoin issuance by licensed firms, leading companies like Orix Corp. to consider launching stablecoins, which are said to offer advantages such as faster money transfers and settlements. MUFG has been in discussions with various parties about using its blockchain platform, Progmat, to create stablecoins tied to foreign currencies.

Tatsuya Saito, MUFG’s vice president of product, believes that Japan’s stablecoin market has the potential to grow to as much as 5 trillion yen ($34 billion), which is roughly a quarter of the estimated current global market.

To execute this issuance plan, Binance will need to obtain a license in Japan as an electronic settlement methods transaction business provider, as per the press release. Once these stablecoins are available, users will be able to use them for cryptocurrency trading and potentially for various payment services, according to Chino.