Japan's Major Banks Aim to Launch Joint Stablecoin by March 2027

Overview

• Japan’s MUFG Bank, Mizuho Bank, and SMBC have formed a council to create operational guidelines for stablecoin issuance.
• The banks are looking to release a jointly issued stablecoin by the conclusion of the 2026 fiscal year.
• This partnership follows a significant surge in institutional stablecoin initiatives in Japan after the establishment of a licensing framework in 2023.

Japan's three largest financial institutions—MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation—have formed a council aimed at developing the operational frameworks necessary for a stablecoin that is set to launch by March 2027.

According to their announcement, the stablecoin will be issued under a trust agreement, with the three banks acting as joint settlors, while a “trust bank or similar institution” will function as the trustee. The banks are aiming for a joint launch in the fiscal year 2026, "with an eye toward the potential use of stablecoins across a wide range of use cases."

The major banks initiated their exploration into joint stablecoin issuance through a pilot project that began in late 2025, which sought to determine if “regulatory and practical compliance” could be achieved “legally and appropriately” when multiple banks collaborate on a stablecoin issuance.

This initiative is part of the FSA's Payment Innovation Project, a dedicated program designed to promote blockchain-based payment innovations within the existing FinTech Proof-of-Concept Hub that has been facilitating fintech experiments since 2017.

In 2023, Japan clarified its regulations regarding stablecoins by introducing amendments to the Payment Services Act, which established a licensing system for the issuance and distribution of fiat-pegged stablecoins. This legislation stipulates that only licensed banks, registered money transfer agents, and trust companies are permitted to issue approved stablecoins. This regulatory clarity has since spurred several yen-backed stablecoin projects.

In October 2025, JPYC Inc. launched Japan's first legally recognized yen-denominated stablecoin, JPYC. In February 2026, SBI Holdings and Startale Group introduced JPYSC, a trust bank-supported yen stablecoin aimed at institutional and cross-border applications. Most recently, the Japan Blockchain Foundation announced in May 2026 that it would issue a yen-pegged stablecoin, EJPY, on Japan Open Chain and Ethereum.

The collaborative effort of these megabanks aligns with a broader trend of institutional stablecoin development in Japan since the introduction of regulatory clarity in 2023. In March 2025, USDC became the first dollar-pegged stablecoin to gain approval in Japan, issued by crypto exchange SBI. Following that, Ripple and SBI Holdings revealed plans to launch the RLUSD dollar-pegged stablecoin in Japan.