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Japan’s three largest financial groups — Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group (SMFG), and Mizuho Financial Group — are collaborating to issue a stablecoin pegged to the Japanese yen, in what could become one of the most significant digital finance developments in Asia.
Reported by Nikkei Asia, the joint initiative aims to create a unified framework for stablecoin issuance and transfer among corporate clients, signalling a major step towards mainstream adoption of blockchain-based financial infrastructure.
A Unified Framework for Digital Settlement
Japan’s top banks launch Yen-backed stablecoin
The new stablecoin will operate on MUFG’s Progmat platform, a blockchain infrastructure designed specifically for regulated financial institutions.
Progmat supports multiple networks, including Ethereum, Polygon, Avalanche, and Cosmos, offering broad interoperability and compliance with Japan’s increasingly mature digital asset regulations.
By aligning under a common technical and legal standard, the consortium intends to streamline corporate settlements, reduce remittance fees, and enhance liquidity management for Japan’s 300,000+ business clients.
The initial rollout will focus on a yen-pegged coin, with discussions already under way for a potential US dollar-backed version that could further bolster Japan’s role in cross-border payments innovation.
Corporate Adoption and Strategic Vision
Mitsubishi Corporation is expected to be the first major adopter, using the stablecoin to manage internal settlements and dividend payments across its 240 subsidiaries worldwide.
According to Nikkei Asia, the consortium plans to issue approximately 1 trillion yen (£5.2 billion) in stablecoins over the next three years, with pilot testing anticipated to begin in late 2025 and a nationwide rollout targeted by March 2026.
The move reflects Japan’s evolving stance from cautious regulation to proactive participation in digital finance.
It follows the Financial Services Agency’s approval of JPYC’s regulated yen stablecoin in August 2025 — the first of its kind in Japan.
The MUFG-led venture also builds on earlier collaborations, including Binance Japan’s 2023 partnership with MUFG Trust and the upcoming Ripple–SBI RLUSD stablecoin, slated for early 2026.
Redefining Cross-Border Finance
If successful, Japan’s bank-backed stablecoin could become a blueprint for regulated digital currency issuance, enabling faster, cheaper, and more transparent settlement networks across Asia.
Combined with growing global interest in tokenised deposits and Open Banking ecosystems, Japan’s initiative could position the country as a leader in next-generation financial infrastructure.
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