Japan’s three banking giants team up to launch a stablecoin

Japan’s three biggest banks, Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho, plan to jointly issue stablecoins, starting with a yen-pegged token.

According to Nikkei, the banks are developing a shared framework to let their corporate clients use a common stablecoin system. The first token will be tied to the Japanese yen, with a U.S. dollar version under consideration for later release.

The project, designed to enable easier interbank transfers under a common standard, marks banks’ coordinated entry into tokenized payments.

In June 2023, Japan passed a law allowing banks and other financial firms to issue stablecoins tied 1:1 to fiat currencies under the Payment Services Act. That framework sets redemption and prudential requirements for issuers. Banks still cannot issue public-chain stablecoins as “electronic payment instruments,” but they can issue tokenized deposits on closed networks among identified users. In September 2024, Japan's Financial Services Agency (JFSA) formed a group of experts called the "Working Group on Payment Services System" to review the country's stablecoin laws.

Japanese banks are increasingly digitizing traditional assets to enhance efficiency. In July 2025, MUFG announced plans to tokenize a ¥100 billion ($681 million) skyscraper in Osaka directly as digital securities for retail and institutional investors. The institution used its Progmat blockchain platform to tokenize ownership in the skyscraper. A survey in August 2025 revealed that 76% of Japanese banks plan to invest in tokenized securities, citing benefits like improved liquidity and faster settlement.

The global stablecoin market capitalization, led by U.S. dollar-pegged assets like Tether (USDT) and USDC, exceeds $307 billion, according to DefiLlama. In a recent interview, BlackRock CEO Larry Fink said the world is at the beginning of tokenizing all assets, including bonds, real estate, equities, and ETFs.

Japan’s top banks unite to launch a stablecoin