The fifth largest bank in the world, Mitsubishi UFJ Financial Group , is set to put its digital currency MUFG Coin into practical use

Japanese bank holding and financial services company Mitsubishi UFJ Financial Group (MUFG), the fifth largest bank in the world, is set to put its digital currency MUFG Coin into practical use later this year.

News of the planned rollout was revealed by the newly-appointed MUFG president Kanetsugu Mike in an interview with local media agency Asahi Shimbun.

MUFG is the largest financial company in Japan and is prospectively set to become the first Japanese bank to issue a virtual currency, specifically a blockchain-based stablecoin pegged 1:1 to the Japanese yen.

The asset is designed with a focus on currency functionality, with customers to download an app that will automatically convert their bank deposits into the stablecoin.

Approximately 1,500 company employees have participated in trialing MUFG Coin since 2017.

“I would like to offer unprecedented new value,” Kanetsugu Mike reportedly told Asahi Shimbun.

In May 2018, MUFG revealed its intention to test MUFG Coin with as many as 100,000 account holders in 2019.

While the phasing between this envisaged testing period and practical implementation this year was not clarified by the president, the bank reportedly intends that users “will be able to use the currency to make payments at places like restaurants, convenience stores and other shops,” as well as to “transfer the currency to other participants’ accounts.”

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