Japan’s three megabanks to launch yen stablecoin by March 2027
On June 10, 2026 MUFG, Mizuho and SMBC signed an MOU to issue a yen‑pegged stablecoin and aim to begin live corporate transactions by March 31, 2027.
MUFG Bank, Mizuho Bank and Sumitomo Mitsui Banking Corporation signed a memorandum of understanding on June 10, 2026 to jointly issue a yen‑pegged stablecoin. The banks will act as joint settlors under a trust agreement, with a licensed trust bank serving as trustee.
The three institutions said they will form a voluntary council to review operational frameworks, governance and technical infrastructure for issuance. The joint release stated, “The Three Banks aim to conduct actual commercial transactions during fiscal year 2026 using a stablecoin.” Fiscal year 2026 in Japan ends March 31, 2027.
The plan builds on a Financial Services Agency proof-of-concept run in November 2025. That pilot used the Progmat distributed ledger platform, placed deposited funds under Mitsubishi UFJ Trust and Banking Corporation as trust assets, and allowed Mitsubishi Corporation to test cross-border payments between its Japanese and overseas offices.
Regulators have said the trust agreement model fits the amended Payment Services Act that took effect in 2023. Under that law, licensed banks, fund transfer providers and trust companies can issue fiat-pegged digital money redeemable at par if backing assets are held as deposits in a licensed Japanese trust bank.
USD-pegged stablecoins account for an estimated 84% to 90% of a global market valued at more than $300 billion. Private yen stablecoins are smaller: JPYC, a leading private issuer, has a market capitalization of about $18 million.
The council will work on issuance infrastructure, system and scheme design, governance arrangements and coordination with other financial institutions. The banks left open the possibility of adding participants and said they plan to move from trials to live commercial transactions by March 31, 2027.
On June 1, 2026 a Liberal Democratic Party panel submitted a proposal to Finance Minister Satsuki Katayama recommending promotion of yen-based stablecoins for settlements across Asia and a legal framework to enable trading of crypto exchange-traded funds.
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