Japan's three largest banking groups, Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho, plan to jointly issue stablecoins by March 2027. The initiative is supported by the Financial Services Agency and aims to enhance payment systems using blockchain technology.
This initiative by Japan's major banks signals a significant step towards the adoption of digital currencies in a traditionally cash-reliant economy, potentially reshaping payment systems and influencing regional digital currency trends.
TOKYO, June 10 (Reuters) - Japan's three largest banking groups, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group, announced on Wednesday their intention to jointly issue stablecoins by March 2027. This move signifies growing momentum for digital payments in Japan, a market where cash and credit cards still dominate.
The banking arms of these financial giants will establish a council to scrutinize operational frameworks and prepare for the stablecoin issuance. The initiative is part of Japan's broader efforts, supported by the Financial Services Agency, to leverage blockchain technology for enhancing payment systems.
Globally, stablecoins have garnered significant backing, including from U.S. President Donald Trump, though concerns persist among some policymakers regarding potential circumvention of regulated financial systems. In Japan, a startup named JPYC began issuing yen-pegged stablecoins in October of the previous year, indicating a gradual shift in payment preferences. Furthermore, a proposal from a ruling party panel this month advocated for promoting the use of yen-based stablecoins for settlements within Asia.