Yen stablecoin planned by Japan’s largest lenders
The stablecoin launch could strengthen the role of regulated digital currencies in payments, settlement and cross-border transactions.
Japan’s three largest banking groups aim to conduct live commercial transactions using a jointly issued stablecoin during fiscal year 2026, marking a significant step for the country’s regulated digital payments market.
MUFG Bank, Mizuho Bank and Sumitomo Mitsui Banking Corporation said the stablecoin would be issued under a trust agreement, with the three banks acting as joint settlors and a trust bank or similar institution acting as trustee.
The banks have signed a memorandum of understanding to establish a voluntary council to examine operational frameworks, governance, and other requirements for practical implementation. The stablecoin initiative follows a demonstration experiment selected in 2025 by Japan’s Financial Services Agency under its FinTech Proof-of-Concept Hub.
The banks said they plan to accelerate work towards live transactions in fiscal year 2026, while taking account of relevant laws, regulations and market trends. The council will also consider possible collaboration with other financial institutions and stakeholders.
The initiative comes as Japan continues to develop a regulated stablecoin market. Amendments to the Payment Services Act that took effect in June 2023 created a legal framework for fiat-backed stablecoins as electronic payment instruments, while recent rule changes have further clarified conditions for foreign stablecoins and cross-border digital payment activity.
Why does it matter?
The project shows how stablecoin development is moving from crypto-native markets into regulated banking infrastructure. A jointly issued stablecoin by Japan’s largest banks could support payments, settlement and cross-border transactions while keeping issuance within a supervised financial framework. It also signals Japan’s effort to position stablecoins as part of mainstream payment infrastructure rather than a parallel, lightly regulated crypto market.
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