Japan’s three megabanks — MUFG Bank, Sumitomo Mitsui Banking Corporation (SMBC) and Mizuho Bank — are moving to launch a jointly issued yen stablecoin, targeting live transactions during fiscal 2026 (which ends in March 2027). The banks say they will accelerate development after signing a memorandum to create a voluntary council that will build the operating and governance framework for the project.
The banks plan to issue the token through a trust arrangement: MUFG, SMBC and Mizuho will act as joint settlors while a trust bank or similar institution will serve as trustee. That shared structure is intended to let the lenders use a single issuance framework rather than each creating separate tokens. The banks have not disclosed the stablecoin’s issuance size, blockchain network, retail access rules or an exact launch date.
The newly formed council will design the issuance infrastructure, system architecture, governance and operational procedures, and will review relevant Japanese laws and market conditions before any live transactions begin. MUFG, SMBC and Mizuho will form the council first, with the option to invite other financial institutions and related companies to join the framework later. The banks say the stablecoin is intended to support multiple payment use cases — not just a narrow pilot — although they have not named initial commercial users or confirmed whether early transactions will be limited to corporate payments.
This initiative builds on a regulatory proof-of-concept supported by Japan’s Financial Services Agency (FSA) in November 2025. That pilot tested joint issuance and cross-border payments involving Mitsubishi Corporation’s domestic and overseas offices. Mitsubishi UFJ Trust and Banking Corporation handled the trust-based issuance design for the pilot, Progmat supplied the blockchain infrastructure, and the three banks collaborated on requirements and assessment standards. The pilot also assessed legal compliance and user-protection measures under Japan’s Payment Services Act, which allows stablecoins to operate as regulated electronic payment instruments if issuers meet specified organizational and reserve rules.
The megabanks’ effort arrives amid growing activity in regulated yen tokens. JPYC launched a yen-backed stablecoin in October 2025, and institutional yen stablecoin projects have been prepared by SBI Holdings and Startale. Japan’s ruling Liberal Democratic Party has also pushed for wider adoption of yen stablecoins, tokenized deposits and 24/7 settlement, along with clearer rules for tax payments, wages and corporate use.
If successful, the three-bank stablecoin could provide a shared settlement route for major corporate clients and help scale regulated tokenized payments in Japan. Its ultimate rollout, however, will hinge on the council’s final design, ongoing regulatory review and the project’s ability to integrate with existing payment systems.
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