Japans BTMU partners Coinbase to assist transfer funds via blockchain

The banking unit of Mitsubishi UFJ Financial Group will invest several hundred million YEN (100 million YEN equals USD 993,200) in Coinbase. Other investors in the San Francisco-based startup include the New York Stock Exchange and Banco Bilbao Vizcaya Argentaria of Spain.

The partnership enables Japanese people to convert Bitcoins into cash through their BTMU bank accounts. Low-cost fund transfers are one service that is likely to emerge from the deal, according to asia.nikkei.com. Wiring money internationally currently costs several thousand YEN per transaction, but blockchain-based money transfers are expected to be a lot cheaper.

The majority of Coinbase’s customers are operating mainly in the US and Europe. Partnering with BTMU, Japans largest bank with 40 million accounts in its home market, will allow the major Bitcoin exchange operator to pursue its ambition of expanding into Asia, the site continues.

The market value of digital currencies totalled USD 7.37 billion at the end of 2015, of which Bitcoin accounted for 90% by some estimates. A banking law revision in Japan that requires businesses handling virtual currency exchange to register with authorities was enacted in May 2016 and is expected to take effect within a year. BTMU will monitor regulatory changes as it explores new services.