Japan's three banking giants plan to begin live commercial transactions using a jointly issued stablecoin within the fiscal year ending March 2027.
In a joint statement released Wednesday, MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation (SMBC) said they plan to issue the stablecoin under a trust agreement, with the three banks serving as joint settlors. A trust bank or similar institution will act as trustee, according to the statement.
Specifically, the banks aim to launch live stablecoin transactions during fiscal year 2026, which runs through March 2027, "with an eye toward the potential use of stablecoins across a wide range of use cases," the statement said.
The three banks have also agreed to establish a council to examine operational frameworks and governance in preparation for the stablecoin issuance.
The announcement builds on several months of groundwork. The three banks first joined forces in October to pilot the stablecoin project, examining how multiple banking groups can jointly issue stablecoins classified as electronic payment instruments under Japanese law.
In November, Japan's Financial Services Agency (FSA) officially supported the banks' initiative, saying the stablecoin project aims to verify whether such a system can be executed "lawfully and appropriately" in accordance with existing financial regulations.
The megabanks' stablecoin initiative is part of the FSA's "FinTech Proof-of-Concept Hub," which has supported fintech experiments since 2017.
The joint project reflects growing momentum for yen-denominated stablecoins after the country clarified its stablecoin regulations in 2023. The amendments to the Payment Services Act introduced the concept of "electronic payment instruments," allowing registered service providers and banks to issue and manage stablecoins.
Several players have since moved decisively. In October 2025, fintech firm JPYC Inc. announced the launch of the country's first legally recognized yen-denominated stablecoin, JPYC. In February, SBI Holdings and Startale Group unveiled JPYSC, a trust bank-backed yen stablecoin for institutional and cross-border use cases.
Last month, Japan Blockchain Foundation said it would issue a yen-pegged stablecoin, EJPY, on Japan Open Chain and Ethereum. EJPY is designed as a trust-type yen stablecoin, with the foundation acting as the settlor.
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