The stablecoin will be issued through a trust structure, with the banks acting as joint settlors and a trust institution serving as trustee. The initiative received support from Japan’s Financial Services Agency and is being developed under the FinTech Proof-of-Concept Hub.
Japan Banks Target Stablecoin Rollout
Japan’s three largest banking groups are moving closer to launching a jointly issued stablecoin. MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation (SMBC) announced that they plan to begin live commercial transactions using a shared stablecoin during fiscal year 2026, which runs through March 2027.
According to a joint statement that was released by the banks, the stablecoin will be issued through a trust structure. The three banking groups will serve as joint settlors, while a trust bank or similar institution will act as the trustee responsible for managing the issuance framework. The project is designed to support a wide range of future use cases and could become an important part of Japan’s digital payments infrastructure.
As part of the initiative, the banks will establish a dedicated council tasked with developing governance standards, operational procedures, and oversight mechanisms ahead of the stablecoin’s launch. The council will help ensure that the project meets regulatory requirements while providing a secure and reliable foundation for commercial adoption.
The announcement follows months of preparation and collaboration between the banking giants. The three institutions first revealed plans to explore a joint stablecoin initiative in October of 2025, focusing on how multiple banking groups could collectively issue digital currencies that comply with Japan’s regulatory framework. The project specifically examines stablecoins classified as electronic payment instruments under Japanese law.
Support from regulators also played a big role in moving the initiative forward. In November 2025, Japan’s Financial Services Agency (FSA) publicly endorsed the project, and stated that it will help determine whether a jointly issued stablecoin system could operate lawfully and appropriately under existing financial regulations.
The initiative is being developed under the FSA’s FinTech Proof-of-Concept Hub. The program was established in 2017 to encourage innovation and experimentation in the financial sector.
The project is part of the growing momentum behind yen-denominated stablecoins after Japan’s regulatory reforms in 2023. Amendments to the Payment Services Act introduced a legal framework for stablecoins through the concept of electronic payment instruments, allowing banks and licensed service providers to issue and manage digital currencies backed by fiat assets.
Since those regulatory changes were introduced, several organizations have launched or announced stablecoin projects. In October 2025, fintech company JPYC Inc. unveiled JPYC, which was recognized as Japan’s first legally compliant yen-denominated stablecoin. More recently, SBI Holdings partnered with Startale Group to launch JPYSC, a trust bank-backed stablecoin designed primarily for institutional and cross-border transactions.
Last month, the Japan Blockchain Foundation announced plans to issue EJPY, a yen-pegged stablecoin that will operate on both Japan Open Chain and Ethereum. The foundation stated that EJPY will follow a trust-based model, with the organization acting as the settlor.
Now, the entry of Japan’s three megabanks into the stablecoin market could accelerate adoption even more and further strengthen confidence in regulated digital currencies.
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