Key facts
- MUFG Bank, Mizuho Bank, and SMBC will jointly issue a stablecoin by March 2027.
- The stablecoin will be issued under a trust agreement with a trust bank as trustee.
- A council will be formed to develop operational frameworks and governance structures.
- The initiative is supported by Japan's Financial Services Agency (FSA).
- Live transactions are planned for fiscal year 2026, concluding March 2027.
Japan's three largest banks—MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation (SMBC)—are collaborating to launch a jointly issued stablecoin by March 2027, aiming to enhance digital payment systems and explore diverse use cases. The banks plan to commence live commercial transactions during fiscal year 2026, which concludes in March 2027, operating under a trust agreement where the banks act as joint settlors and a designated trust bank serves as trustee. This structure allows for a shared issuance framework. A new council will be established to prepare operational frameworks, governance structures, and system designs, potentially inviting other institutions later. The project builds on a pilot initiative started in October 2025, focusing on legal and operational aspects under Japan's Payment Services Act, with support from the Financial Services Agency (FSA). This aligns with Japan's 2023 stablecoin regulation clarification. Other yen-denominated stablecoin developments include JPYC Inc.'s launch, plans from SBI Holdings and Startale Group, and the Japan Blockchain Foundation's upcoming issuance.