TLDR
- MUFG Bank, Mizuho Bank and SMBC plan a joint stablecoin launch by March 2027.
- The banks will establish a council to review operations and governance.
- The stablecoin will be issued under a trust agreement.
- Japan’s FSA supported the project through its fintech testing framework.
- Japan clarified stablecoin rules under the Payment Services Act in 2023.
Japan’s three largest banks plan to jointly issue stablecoins during the current fiscal year ending in March 2027, marking a major step in the country’s effort to bring blockchain-based payments into mainstream finance.
MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation said they will establish a council to examine operational frameworks, governance, and practical requirements for stablecoin issuance. The three banks are the banking arms of Mitsubishi UFJ Financial Group, Mizuho Financial Group, and Sumitomo Mitsui Financial Group.
The planned stablecoin will be issued under a trust agreement. The three banks will serve as joint settlors, while a trust bank or similar institution will act as trustee. The banks said they aim to begin live commercial transactions during fiscal 2026, which runs through March 2027.
Japan Megabanks Form Stablecoin Council
The new council will review how the banks can jointly issue and manage stablecoins under Japan’s financial rules. The work will cover governance, operating models, compliance standards, settlement processes, and possible commercial use cases.
The three banks began exploring the project through a pilot in late 2025. That trial examined whether multiple banking groups could jointly issue stablecoins classified as electronic payment instruments under Japanese law.
Japan’s Financial Services Agency has supported the experimental stage through its FinTech Proof-of-Concept Hub and Payment Innovation Project. The regulator said the initiative is intended to test whether such a system can operate legally and appropriately under existing financial regulations.
The project reflects growing interest in using blockchain technology to improve payments in Japan, where cash and credit cards remain widely used. Stablecoins could offer faster settlement and programmable payment functions if they are issued within a regulated structure.
Trust Structure Sets Legal Framework
The planned stablecoin will use a trust-based model, with the megabanks acting together as settlors. A trustee institution will hold and manage the assets backing the stablecoin, according to the structure outlined by the banks.
Japan clarified its stablecoin rules in 2023 through amendments to the Payment Services Act. The law introduced the category of electronic payment instruments and created a licensing framework for fiat-pegged stablecoins.
Under Japan’s rules, approved stablecoins can be issued by licensed banks, registered money transfer agents, and trust companies. That framework has helped create a path for regulated yen-backed stablecoins.
The banking groups said the stablecoin could be used across a wide range of cases. Potential uses may include corporate settlement, cross-border payments, digital commerce, and financial market infrastructure, although the banks have not released a final product structure or launch details.
Yen Stablecoin Market Gains Momentum
The megabank plan follows a series of yen-backed stablecoin initiatives in Japan. JPYC Inc. launched JPYC in October 2025 as the country’s first legally recognized yen-denominated stablecoin.
In February 2026, SBI Holdings and Startale Group introduced JPYSC, a trust bank-backed yen stablecoin designed for institutional and cross-border use cases. In May 2026, the Japan Blockchain Foundation announced plans to issue EJPY, a yen-pegged stablecoin on Japan Open Chain and Ethereum.
The activity shows that Japan’s stablecoin market is moving from regulatory preparation toward commercial testing. The participation of MUFG Bank, Mizuho Bank, and SMBC brings the country’s largest banking groups directly into that process.
Global interest in stablecoins has also increased as governments and financial institutions examine digital payment systems. Supporters view regulated stablecoins as a way to modernize settlement, while some policymakers remain concerned that stablecoins could move funds outside traditional banking controls.
