Orix Bank and Binance Holdings are considering entering the stablecoin space in Japan. These digital tokens, tethered to legal tender or assets, offer price stability. Orix plans to test stablecoins backed by deposits, aiming for full-scale issuance by 2024. Binance eyes the Progmat stablecoin platform, seeking to track currencies like the yen and dollar. Recent Japanese regulations restrict stablecoin issuance to banks and select financial entities, differentiating them from crypto-assets. Orix and Binance target the burgeoning business-to-business payment settlement market, seeking to leverage blockchain’s efficiency. This move aligns with global projections indicating the stablecoin market’s potential to surge from $125 billion to $2.8 trillion in five years. This anticipated growth is largely attributed to integration with consumer platforms, underscoring a significant shift in financial landscapes.
