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Hokkoku Bank launches bank deposits-backed stablecoin

Tuesday 2 April 2024 13:53 CET | News

Japan-based Hokkoku Bank has launched one of the first stablecoins in Japan backed by bank deposits.

 

In 2023, Hokkoku Bank it launched the Tochituka app, which allows citizens to earn Tochipo points from the local Suzu City government and spend them at certain stores. Now those who already have a Hokkoku bank account can use the same app to top up their Tochika – the deposit backed stablecoin – which they can spend at local stores.

Hokkoku Bank has launched one of the first stablecoins in Japan backed by bank deposits.

Facilitating Japan’s adoption of cashless payments

Japan remains a cash-centric society. The bank aims to draw in retail businesses deterred by the high costs of cashless payments by offering merchant rates of just 0.5%. It also targets companies issuing paper gift certificates, encouraging them to adopt the digital app for points-based transactions.

By the end of 2024 Hokkoku Bank plans to enable person-to-person payments through the app. It also wants to attract other banks to join it within the Ishikawa prefecture. Expansion to other regions is the ultimate goal.

Other Japanese digital currency initiatives

In September 2023, MUFG and Binance Japan started collaborating on a study to issue a new stablecoin tied to fiat currencies using the 'Progmat Coin' platform. This platform complies with Japanese law and aims to accelerate the adoption of Web3 in Japan. MUFG is developing the platform to issue stablecoins in line with the revised Payments Services Act. The stablecoins will be available once intermediaries handling them complete license registration.


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Keywords: stablecoin, web3, cashless, bank account, merchant
Categories: DeFi & Crypto & Web3
Companies: Hokkoku Bank
Countries: Japan
This article is part of category

DeFi & Crypto & Web3

Hokkoku Bank

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