Japan’s top financial institutions — MUFG, Sumitomo Mitsui Banking Corp. (SMBC) and Mizuho Bank — are reportedly collaborating to launch a yen-pegged stablecoin aimed at modernizing corporate payments and settlements across the country.
Japan’s Banking Giants Form Stablecoin Consortium
According to a Nikkei report published Friday, the three banks will issue a joint stablecoin through Mitsubishi UFJ Financial Group’s (MUFG) blockchain platform Progmat, a system designed for secure, regulated stablecoin issuance.
The consortium intends to reduce transaction costs and streamline settlements between Japan’s largest corporations, collectively serving more than 300,000 business clients. The stablecoin will be interoperable across companies, allowing for faster, standardized transfers within and between organizations.
The rollout is expected by the end of 2025, with Mitsubishi Corporation — which operates over 240 subsidiaries worldwide — set to be the first adopter for internal settlements, dividend payments and global transactions.
If successful, this initiative would create Japan’s first unified bank-backed stablecoin network, setting a precedent for regulated digital yen infrastructure.
Cointelegraph has reached out to MUFG, SMBC and Mizuho for comment but did not receive a response by publication.
MUFG’s Progmat Platform Expands Stablecoin Capabilities
MUFG officially launched Progmat Coin in June 2025, announcing that it would support stablecoin issuance on major blockchain networks including Ethereum, Polygon, Avalanche and Cosmos.
The platform enables banks to issue fully backed yen-based stablecoins under Japan’s new legal framework for digital currencies, which came into effect earlier this year.
In September, Binance Japan partnered with Mitsubishi UFJ Trust and Banking Corporation (MUTB) to explore stablecoin issuance using Progmat Coin.
“Stablecoins will play a vital role in the financial ecosystem and accelerate Web3 adoption,” said Takeshi Chino, General Manager of Binance Japan.
Japan’s Stablecoin Competition Heats Up
The move by Japan’s mega banks comes amid a national push toward regulated stablecoin adoption.
In August, reports surfaced that the Financial Services Agency (FSA) was preparing to approve yen-pegged stablecoin issuances, with fintech firm JPYC leading early efforts. Meanwhile, Monex Group announced plans to develop its own yen-backed token, with chairman Oki Matsumoto warning that firms risk “being left behind” without stablecoin infrastructure.
Japan’s financial sector now appears poised for a new era of blockchain-integrated banking, with the stablecoin market expected to become a key driver of digital finance and Web3 innovation in the region.
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