Three of Japan's leading banks—MUFG, Mizuho, and Sumitomo Mitsui—have initiated plans to create a joint stablecoin through a newly formed council. This effort aims to facilitate commercial transactions by the end of the fiscal year 2026, which will conclude in March 2027. The council will be responsible for developing an operational model, governance framework, and the necessary infrastructure for issuing the stablecoin. Furthermore, the Financial Services Agency of Japan is backing the project, which builds on a pilot launched in November 2025. In this pilot, the banks collaborated with Mitsubishi UFJ Trust and Progmat, testing the stablecoin's potential for cross-border transactions, initially focusing on its use for Mitsubishi Corporation.