Japan's Top Three Banks Target Yen-Linked Stablecoin Launch by March 2027
Japan's three biggest banking groups said on Wednesday they will jointly issue a yen-pegged stablecoin and aim to begin live corporate transactions by the end of fiscal 2026, seeking to build domestic digital payment rails as U.S. dollar stablecoins dominate the global market.
MUFG Bank, Mizuho Bank and Sumitomo Mitsui Banking Corporation (SMBC) announced in a joint statement dated June 10, 2026 that they have signed a memorandum of understanding to set up a voluntary governance council. The council will examine the operating model, governance arrangements and technical infrastructure needed for issuance.
Under the proposed structure, the three banks would act as joint settlors under a trust agreement, while a licensed trust bank would serve as trustee. The banks said they intend to conduct real commercial transactions during fiscal year 2026. Japan's fiscal year ends on March 31, 2027.
The plan builds on a proof-of-concept approved by Japan's Financial Services Agency (FSA) in November 2025 through its FinTech Proof-of-Concept Hub. That pilot tested the joint issuance of standardized, mutually exchangeable yen-denominated stablecoins for corporate use, with Mitsubishi UFJ Trust and Banking Corporation managing deposited funds as trust assets.
Mitsubishi Corporation used the pilot tokens for cross-border payments between its Japan and overseas offices, aiming to lower remittance fees and reduce administrative workload. The system operated on the Progmat platform, a distributed ledger infrastructure closely tied to MUFG.
The trust-based issuance model fits within Japan's amended Payment Services Act, which took effect in 2023. The framework allows licensed banks, fund transfer providers and trust companies to issue fiat-pegged digital money redeemable at par, with assets held as deposits at a licensed Japanese trust bank to ensure segregation and redemption protections.
Political backing has also strengthened. On June 1, 2026, a panel of Japan's ruling Liberal Democratic Party submitted a proposal to Finance Minister Satsuki Katayama calling for the promotion of yen-based stablecoins for settlements across Asia and for a legal framework enabling crypto ETF trading.
The move is positioned as a direct challenge to the market power of U.S. dollar stablecoins, which are estimated to account for 84% to 90% of the $300+ billion global stablecoin market. The three megabanks collectively serve hundreds of thousands of corporate clients, and a standardized, interoperable yen stablecoin at that scale could draw settlement flows away from USD-pegged tokens.
By comparison, JPYC, Japan's leading private yen stablecoin issuer, has a market capitalization of about $18 million.
Next, the council will work on issuance infrastructure, system and scheme design, governance and coordination with other financial institutions. The banks said they may expand participation beyond the initial three. Live corporate transactions in fiscal 2026 remain the stated target, supported by existing regulatory groundwork and an already-operational technology platform.
