Japan's Major Banks Plan Joint Stablecoin Launch by March 2027

Three of Japan's leading banks are set to collaborate on the issuance of a stablecoin by March 2027.

MUFG, SMBC, and Mizuho will form a council to develop operational frameworks for stablecoin issuance.

By Jamie Crawley|Edited by Sheldon Reback Jun 10, 2026, 9:01 a.m. 1 min read

Key Points:

• Japan's largest banks have announced plans to jointly issue a stablecoin by the end of the current financial year.
• MUFG, SMBC, and Mizuho will create a council to investigate operational structures and prepare for the stablecoin launch.

Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group (SMBC), and Mizuho Financial Group are set to collaborate on a stablecoin project, as detailed in a press release from MUFG.

The announcement specifies that these banks will serve as "joint settlors," while a trust bank or a similar entity will take on the role of trustee.

Japan's Financial Services Agency (FSA) expressed its support for the stablecoin initiative from the three banks last November. More recently, the ruling Liberal Democratic Party (LDP) has advocated for the promotion of yen-backed stablecoins.

Stablecoins are digital currencies designed to maintain a stable value by being pegged to traditional financial assets, typically fiat currencies. The market is largely dominated by U.S. dollar-pegged tokens, with Tether's USDT and Circle Internet's (CRCL) USDC making up 84% of the market share.

In contrast, yen-pegged tokens hold a minimal position in the market, totaling under $50 million in a sector valued at $311 billion. The most notable is JPYC, which has approximately $18 million in market capitalization and is issued by a fintech company based in Tokyo of the same name.