Japan’s three largest banks have joined forces to issue a yen-pegged stablecoin, the Nikkei business daily reported on Friday.
MUFG, SMBC Group and Mizuho are initially issuing a yen-pegged coin for institutional use and are considering a dollar-pegged version in the future.
The digital currencies will be pegged 1:1 to fiat and are designed to help corporate clients process payments and settlements more quickly through a shared framework among the participating banks.
Tokyo-based fintech company JPYC has become the first firm in Japan to receive official approval to issue yen-backed stablecoins.
CEO Noritaka Okabe said during a press briefing that JPYC’s coin will be “fully convertible into yen” and backed by local savings and Japanese government bonds.
JPYC plans to roll out about 1 trillion yen ($6.81 billion) worth of its stablecoin over the next three years.
The token, set to debut this autumn, is expected to attract interest from major investors, including hedge funds and family offices.
