The Japanese Mitsubishi UFJ Trust and Banking is preparing to launch a service that will protect cryptocurrency holders if the exchanges they use are interrupted or hacked, reports the online publication Nikkei Asian Review.

The banking giant will keep the corresponding records of cryptocurrency exchanges of customers who opt for the system. In the event that the exchange fails or is compromised, Mitsubishi UFJ will indemnify its customers for their losses according to the records that they maintain.

Nikkei reports that the service will start with the Bitcoin trade and could launch as early as April. Crypto exchange users who opt to have their funds protected by the Mitsubishi UFJ will be charged a fee for the service.

However, as Tokyo-based CEO of Bitbank Noriyuki Hirosue says, the supplement may be an easy price to pay for those who prefer to trust traditional financial institutions:

"Customers will feel comfortable knowing that a trusted bank manages their assets."

Japanese cryptocurrency investors are undoubtedly particularly sensitive to the risks associated with the use of cryptographic exchanges – a major cryptocurrency exchange based in Japan. Unfortunately, Gox closed in 2014 after hackers stole 850,000 bitcoins from customers.

Japan is recognized as a world leader in the investment and regulation of cryptocurrency. Nikkei reports that the Japan Financial Services Agency is ready to recognize cryptocurrencies as assets that can be placed in trust by April 2018.