Japan’s three largest banks are preparing to issue a stablecoin, as momentum builds around blockchain-based payment infrastructure.
The banking arms of Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group are behind the initiative.
The banks will form a dedicated council to assess how the stablecoin could operate in practice, including the frameworks needed before issuance.
The stablecoin is planned for the fiscal year ending March 2027.
Japan’s Financial Services Agency has supported the experimental stage of the project, as the country looks to explore how blockchain technology can be used to enhance payment systems.
The move marks another example of traditional financial institutions moving closer to digital asset infrastructure, with major banks increasingly exploring stablecoins as a route to faster and more efficient settlement.
Rather than positioning stablecoins as a crypto-native product alone, the project reflects growing institutional interest in regulated digital payment rails backed by established financial groups.
The announcement follows October’s launch of JPYC, Japan’s first regulated yen-backed stablecoin under the revised Payment Services Act.
Issued by JPYC Inc. through its JPYC EX platform, the token is fully backed by yen-denominated bank deposits and government bonds, and is classified as an electronic payment instrument.
Read full JPYC coverage on CaPio: JPYC issues Japan’s first regulated Yen stablecoin – Capital Pioneer.
