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Japan’s three largest banking groups plan to begin live commercial transactions with a shared stablecoin in fiscal 2026. MUFG Bank, Mizuho Bank, and SMBC will issue it through a trust structure, with a trust institution serving as trustee. The project also has support from Japan’s Financial Services Agency.
The three banking groups will act as joint settlers in the planned structure. A trust bank or similar institution will manage the issuance framework as trustee. The banks said the model can support a wide range of future use cases in digital payments.
They also plan to create a dedicated council before launch. That council will shape governance standards, operational procedures, and oversight rules. Its work will help the project meet regulatory requirements and support secure commercial use.
The initiative follows months of planning between the banks. In October 2025, they first disclosed plans to explore a joint stablecoin under Japan’s regulatory framework. The project focuses on stablecoins treated as electronic payment instruments under Japanese law.
Regulators have already given the project momentum. In November 2025, the Financial Services Agency said it supported the effort. The agency said the project can help show whether a jointly issued stablecoin can operate lawfully and properly.
The initiative is moving forward under the FSA’s FinTech Proof-of-Concept Hub. The program began in 2017 to encourage experimentation in financial services. It now serves as a formal setting for the stablecoin work.
Japan’s ruling Liberal Democratic Party also backed broader use of yen-based stablecoins. That political support arrived as banks and fintech groups expanded their own plans. The result has been a stronger push for regulated digital currency projects.
Read More: Japan Pushes Yen Stablecoins and Crypto ETFs in Bold Market Shift
Japan’s 2023 Payment Services Act reforms created the legal base for stablecoins. The law introduced electronic payment instruments and allowed banks and licensed service providers to issue fiat-backed digital tokens. Since then, more yen-linked projects have appeared.
In October 2025, JPYC Inc. launched JPYC, which it described as Japan’s first legally compliant yen-denominated stablecoin. Soon after, SBI Holdings and Startale Group announced JPYSC, a trust bank-backed token aimed mainly at institutions and cross-border use.
Last month, the Japan Blockchain Foundation announced EJPY, a yen-pegged stablecoin for Japan Open Chain and Ethereum. The foundation said it will use a trust-based model, with the organization as settlor.
Yen stablecoins still hold a tiny share of the global market. The sector totals about $311 billion, while yen-linked tokens account for less than $50 million. USDT and USDC dominate the market with a combined 84% share, while JPYC holds about $18 million.
Japan’s three largest banking groups plan to launch a jointly issued stablecoin during fiscal 2026 through a trust-based structure backed by regulatory support. The initiative includes a governance council and builds on Japan’s growing framework for regulated yen-denominated digital currencies. Its progress could shape the next phase of digital payments in the country.
