Stablecoin project by Japan’s top banks gains regulatory support
Three major Japanese banks to jointly issue stablecoins backed by legal tender.
Japan’s Financial Services Agency (FSA) has announced its support for a pilot project involving three of the country’s largest banks to issue stablecoins jointly.
The initiative, backed by MUFG Bank, Sumitomo Mitsui Banking Corporation and Mizuho Bank, will test the use of blockchain-based digital assets tied to legal tender such as the yen or the dollar.
The FSA said it will offer guidance on legal interpretations and international developments under its new fintech support programme. The project aims to investigate how stablecoins can serve as a secure and efficient electronic payment method, while addressing potential regulatory and technical challenges.
Mitsubishi Corporation will be the first company to trial the stablecoins, using them for payments between its domestic and overseas offices. The results are expected to inform future steps towards broader adoption of digital payment systems among Japanese corporations.
By supporting the trial, regulators aim to foster innovation in financial sector of Japan while ensuring that new digital assets remain compliant with existing laws and international standards.
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