Mitsubishi UFJ Financial Group, one of the world's largest comprehensive financial groups, comprising a diverse range of leading companies in a wide field of financial businesses, is reportedly working to set up a hedge mechanism for investors is order to let them maintain Bitcoin holdings safely.
The decision was made in the aftermath of the high volatility of cryptocurrency market and the riskiness of Bitcoin trading. The financial units of Mitsubishi are looking for the reduction of costs and elimination of the possibility of downturn in BTC trading.
Moreover, Mitsubishi is planning to keep the records of Bitcoin transactions in the ledger, which will be used to guarantee the holders of BTC the safety of their funds in case of the exchange failure. However, the crypto assets will not be refunded to traders if BTC price drops. The Mitsubishi Financial Group will work as the central bank works towards fixed-income exchange.
Thus, the hedge mechanism of Mitsubishi will presumably let the Japanese financial industry to capitalize on the volatility of the Bitcoin market and reduce the risks connected with BTC trading.
Previously, we have reported that Mitsubishi UFJ Financial Group and NTT DATA announced the launch of a Proof-of-Concept blockchain technology.
At the moment of press, these are main market parameters of Bitcoin:
- Average price: $16 653,30
- Marketcap: $279 199 652 152
- 24h volume: $12 642 900 000