Japan’s three largest banks are moving forward with plans to launch a jointly issued stablecoin, with live transactions expected to begin during the country’s 2026 fiscal year, which ends in March 2027.
The project brings together MUFG Bank, Sumitomo Mitsui Banking Corporation (SMBC), and Mizuho Bank under a shared framework designed to make digital payments faster and more efficient.
To support the initiative, the banks have signed an agreement to create a joint council that will oversee the development of the stablecoin system. The group will focus on areas such as governance, technical infrastructure, operating rules, compliance requirements, and future participation by other financial institutions.
Under the proposed structure, the stablecoin will be issued through a trust arrangement. The three banks will act as joint issuers, while a trust bank or similar institution will manage the assets backing the token.
The banks say the goal is to build a common platform instead of creating separate stablecoins, allowing for smoother transactions and broader adoption across Japan’s financial system.
The project follows a successful pilot program supported by Japan’s Financial Services Agency (FSA). The trial tested cross-border payments between domestic and overseas offices of Mitsubishi Corporation and examined how stablecoins could be used within a regulated financial environment.
Blockchain infrastructure for the pilot was provided by Progmat, while the participating banks worked on operational requirements, legal compliance, and customer protection measures.
Japan has been actively developing regulations for stablecoins in recent years. Under current laws, stablecoins can operate as regulated electronic payment instruments if issuers meet strict reserve and compliance requirements.
The new project enters a growing market that already includes other yen-backed digital currency initiatives. Several Japanese companies and financial groups have launched or announced their own stablecoin plans as interest in digital payments continues to expand.
Japan’s ruling Liberal Democratic Party has also expressed support for wider adoption of stablecoins, tokenized deposits, and around-the-clock payment systems as part of the country’s broader digital finance strategy.
While details such as the stablecoin’s name, launch date, blockchain network, and transaction limits have not yet been announced, the three banks believe the project could become an important tool for corporate payments and future financial services in Japan.
If successful, the initiative could help position Japan as one of the leading markets for regulated stablecoin adoption and digital payment innovation.
