Japan’s Three Megabanks Target Joint Yen Stablecoin Launch by March 2027

Japan’s three largest banks MUFG Bank, Sumitomo Mitsui Banking Corporation and Mizuho Bank are planning to launch a jointly issued yen stablecoin with live transactions targeted for fiscal year 2026, which ends in March 2027. The project marks one of the most significant coordinated banking efforts in Japan’s digital currency sector.

The stablecoin will be issued through a trust-based structure where the three banks act as joint settlors, while a trust bank or similar institution will manage issuance as trustee. The banks aim to use a single shared framework instead of developing separate digital tokens.

Governance Council to Define Stablecoin Framework

The banks have signed a memorandum to establish a voluntary council that will design the system’s governance, operating rules, infrastructure, and long-term structure. The group will also assess regulatory requirements under Japanese law and determine how future financial institutions could participate in the network.

The official statement did not confirm key details such as the token’s total supply, blockchain network, retail access model, or exact launch date beyond the fiscal 2026 target. However, the banks stated that they will accelerate development efforts under the new framework.

FSA-Supported Pilot Demonstrated Cross-Border Payments

The initiative builds on a regulatory pilot supported by Japan’s Financial Services Agency (FSA) in November 2025. That test examined joint stablecoin issuance and cross-border corporate payments involving Mitsubishi Corporation’s domestic and overseas operations.

Mitsubishi UFJ Trust and Banking Corporation managed the trust structure, while Progmat provided the blockchain infrastructure. The pilot also evaluated compliance standards and user protection mechanisms under Japan’s Payment Services Act.

Expanding Japan’s Regulated Stablecoin Market

Japan is already developing a regulated stablecoin ecosystem. JPYC launched a yen-backed stablecoin in October 2025, while SBI Holdings and Startale are also working on institutional stablecoin initiatives.

The ruling Liberal Democratic Party has supported wider adoption of yen stablecoins, tokenized deposits, and continuous settlement systems for payments such as wages and taxes. The three-bank initiative could strengthen corporate settlement infrastructure if successfully implemented, depending on final regulatory approval and system integration.