Mitsubishi UFJ Trust and Banking Corporation Regarding the establishment of a working group for the sound intr oduction and popularization of “permissionless stablecoins”

Mitsubishi UFJ Trust and Banking Corporation
Establishment of a working group for sound introduction and
popularization of “permissionless stablecoin”

The “Digital Asset Co-Creation Consortium” (abbreviation DCC, 158 member companies) sponsored by Mitsubishi UFJ Trust and Banking Co., Ltd. (President: Iwao Nagashima, hereinafter referred to as
“Mitsubishi UFJ Trust and Banking”) is a “permissionless stable coin” in Japan. *1 (hereafter referred to as “permissionless SC”)”, we will set up a “permissionless stablecoin working group (WG)” and start deliberations.
*1 Among payment methods that aim to link legal currency and value (“electronic payment methods” in the Payment Services Act) that can be transferred using an electronic information processing system such as blockchain (BC), specific management Generic term for anything issued on a BC that allows anyone to access the network without permission 1. Problem to solve
For example, we are aware of the following issues in transactions on “Web3”. 1. Assuming that “bank transfer” or “credit card” is used as payment consideration for NFT*2 sales, there will be a burden such as checking the payment each time off-chain (outside BC) before NFT issuance. are unable to list on the global NFT marketplace
2. If crypto assets are used for the purpose of automatic processing on-chain (on BC) or listing on the global NFT marketplace, there will be price volatility regarding the consideration received.
3. Overseas-issued stablecoins are widely used as risk-off assets, but because they are not currently handled in Japan, customers and assets are flowing out to overseas cryptocurrency exchanges.
4. Overseas issued stablecoins are used for cover transactions in the crypto asset exchange business
5. The international mainstream is to use permissionless stablecoins issued overseas as a form of investment in Web3 companies by investment companies.
Since the majority of NFTs and crypto assets are issued and
distributed by permissionless BC, in order to meet the above-mentioned needs, “automatic processing using smart contracts” on “permissionless BC” is necessary. It can be said that the existence of a
permissionless SC that is possible and “price stable” is essential. *2 Generic term for unique and irreplaceable data that can be transferred using an electronic information processing system such as BC
2. Overview of “Permissionless SCWG”
 For permissionless SCs, unlike permissioned BCs that require permission for network access, it is necessary to devise schemes and technical aspects based on the inherent risk characteristics of permissionless BCs.
At the same time, while keeping an eye on the revised Payment Services Act scheduled to come into effect in 2023, it is also important to gather the voices of private business operators into one and to proceed while communicating appropriately and promptly with the relevant authorities.
Therefore, DCC has decided to establish a total of 42 organizations and WGs, including financial institutions, exchanges/PTS*3, securities companies, crypto asset exchanges, software companies, and law firms, under the observation of relevant authorities and associations. . *3 Proprietary Trading System that allows trading of securities without going through a stock exchange
3. Future plans
This WG is planning the following initiatives.
1. By the end of 2022, we will announce the scheme proposal and functions necessary for the introduction of permissionless SCs issued domestically and overseas. , Start of business/system design, consensus building, and social implementation for appropriate permissionless SC issuance using “Progmat Coin”, SC issuance and management platform (multi-chain support)
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-Participant of “Permissionless Stablecoin WG”-
[Table 2: ]

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