Japan's top banks MUFG, Mizuho, and SMBC are set to launch a joint stablecoin by March 2027, building on recent regulatory clarity.
Key Developments
- MUFG Bank, Mizuho Bank, and SMBC are collaborating to create a stablecoin.
- The target launch date is set for the end of the 2026 fiscal year.
- This initiative follows the introduction of a regulatory framework for stablecoins in Japan in 2023.
Japan's leading financial institutions—MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation—are joining forces to establish operational guidelines for a new stablecoin, expected to debut by March 2027.
The joint stablecoin will be issued under a trust agreement, with the three banks serving as joint settlors and a designated trust bank acting as the trustee. The banks aim for a collaborative launch during the fiscal year 2026, envisioning the stablecoin's application across various sectors.
This initiative follows a pilot project initiated in late 2025, which focused on assessing the legal and practical compliance of joint stablecoin issuance among multiple banks.
The project is part of the Financial Services Agency's (FSA) Payment Innovation Project, an initiative promoting blockchain-based payment solutions within Japan's FinTech landscape, which has been active since 2017.
Japan's regulatory environment for stablecoins was clarified in 2023 with amendments to the Payment Services Act, establishing a licensing framework for fiat-pegged stablecoins. Only licensed banks, registered money transfer agents, and trust companies are permitted to issue these stablecoins, leading to a rise in yen-backed stablecoin projects.
Notably, in October 2025, JPYC Inc. launched Japan's first legally recognized yen-denominated stablecoin, followed by other initiatives such as the JPYSC and EJPY stablecoins from SBI Holdings and the Japan Blockchain Foundation, respectively. This collaborative effort among Japan's major banks reflects a growing trend in institutional stablecoin development following the regulatory updates in 2023.
