Japan’s three major banks, MUFG Bank, Mizuho Bank and Sumitomo Mitsui Banking Corporation (SMBC), have joined forces to issue a shared stablecoin. According to a joint statement released by the banks on Wednesday, the trio plans to begin live commercial transactions with the stablecoin during fiscal year 2026. Japan’s fiscal year ends in March 2027.
A trust-based model
According to the statement, the stablecoin will be issued under a trust agreement. All three banks will act as joint settlors, while a trust bank or a similar institution will serve as trustee. The banks’ goal is clear: they do not want the stablecoin to remain only a pilot project, but aim to put it into use across “a very wide range of applications.”
In line with this goal, the three banks have also decided to establish a council that will review the operational framework and governance model as part of preparations for the issuance process.
Months of groundwork
The partnership did not emerge overnight. The three banks first joined the project in October 2024. At the time, the main focus was to explore how stablecoins classified as electronic payment instruments under Japanese law could be jointly issued by multiple banking groups.
In November 2024, Japan’s Financial Services Agency (FSA) backed the project. The agency said the initiative aimed to verify whether the plan could be implemented in a “legal and appropriate” manner under existing financial regulations. The project is being carried out under the FSA’s FinTech Proof-of-Concept Hub program, which has supported fintech trials since 2017.
Yen stablecoin ecosystem grows
The three banks’ move is part of a broader trend in Japan. The country clarified its stablecoin regulations in 2023; amendments to the Payment Services Act established the legal basis for the concept of “electronic payment instruments” and paved the way for registered service providers and banks to issue and manage stablecoins.
This regulatory clarity quickly turned into concrete steps. In October 2025, fintech company JPYC Inc. launched JPYC, the country’s first legally recognized yen-denominated stablecoin. In February 2026, SBI Holdings and Startale Group announced JPYSC, a trust bank-backed yen stablecoin designed for institutional and cross-border use cases. Last month, the Japan Blockchain Foundation said it would issue EJPY, a yen-pegged stablecoin that will operate on both Japan Open Chain and Ethereum. EJPY was also designed with a trust-type structure, with the foundation acting as settlor.
The weight of three giants
This project differs from initiatives such as JPYC or EJPY because it is backed by Japan’s three largest commercial banks. MUFG, Mizuho and SMBC together represent trillions of dollars in assets and form the backbone of the country’s institutional financial infrastructure. Their joint development of a payment instrument can be read as one of the strongest signals yet that yen-denominated digital currencies may move into real-world use.
The banks’ joint statement lays out a concrete timeline: live transactions are expected to begin during fiscal year 2026, meaning no later than March 2027. By then, the council to be established is expected to complete the governance model and operational framework.
