Japan's three largest banks, MUFG Bank, Sumitomo Mitsui Banking Corporation (SMBC) and Mizuho Bank, said on 10 June 2026 that they would jointly issue a yen-denominated stablecoin, with live transactions targeted in the fiscal year ending March 2027.
The banks reached a basic agreement to set up a council to jointly study operations and governance, according to a joint statement published on MUFG Bank's website. The council will examine the possibility of building an issuance platform, as well as system design, the scheme and governance, and the banks will deepen their study taking into account relevant laws and market trends.
TRUST-BASED STRUCTURE
The stablecoin will be issued under a trust arrangement. The three banks will act as "joint settlors and a trust bank or similar institution will act as trustee," the statement said. The banks will also consider how to work with other financial institutions and parties that may consider participating in future. The banks are targeting the launch "with an eye toward the potential use of stablecoins across a wide range of use cases," according to the statement.
BUILDING ON AN FSA-BACKED PILOT
The project follows a pilot that Japan's Financial Services Agency supported in November 2025 under its Payment Innovation Project. The pilot examined joint stablecoin issuance and corporate cross-border payments involving payments between Mitsubishi Corporation's Japanese and overseas subsidiaries.
Japan's amended Payment Services Act, in force since June 2023, created a licensing regime for fiat-pegged stablecoins, under which such tokens may be issued only by licensed banks, registered money transfer agents and trust companies. JPYC launched a yen-backed stablecoin in October 2025, and SBI Holdings and Startale Group unveiled JPYSC, a trust bank-backed yen stablecoin for institutional and cross-border use, in February 2026. Japan's ruling Liberal Democratic Party has called for wider use of yen-based stablecoins.