USDJapan Megabanks Plan Joint Stablecoin Launch by March 2027
MUFG, Mizuho and SMBC prepare regulated yen-linked payment rails
TL;DR
- Japan’s three megabanks plan live stablecoin transactions by March 2027.
- MUFG Bank, Mizuho Bank and SMBC have formed a council to develop a joint issuance framework.
- The stablecoin is expected to use a trust agreement and target a wide range of use cases.
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Japan’s three largest banking groups are preparing a jointly issued stablecoin for live commercial transactions by the end of fiscal year 2026, placing the target launch before March 2027.
MUFG Bank, Mizuho Bank and Sumitomo Mitsui Banking Corporation have formed a council to develop the operational framework and governance model for the planned stablecoin. The project is structured as a coordinated bank-led effort rather than separate stablecoin launches by each institution.
The planned stablecoin is expected to be issued under a trust agreement. Under that structure, MUFG Bank, Mizuho Bank and SMBC would act as joint settlors, while a “trust bank or similar institution” would serve as trustee.
The banks said they are pursuing the launch “with an eye toward the potential use of stablecoins across a wide range of use cases.” The statement leaves the commercial applications broad, but it places the project inside Japan’s regulated financial system rather than treating it as a crypto-native experiment.
Council builds on earlier pilot work
The new council follows a pilot project launched in late 2025, when the three banks began exploring whether multiple banking groups could jointly issue stablecoins while satisfying “regulatory and practical compliance” requirements.
That earlier work examined whether the stablecoins could be issued “legally and appropriately” and treated as electronic payment instruments under Japanese law.
Japan’s Financial Services Agency supported the initiative in November through a regulatory experimentation framework tied to the Payment Innovation Project and the FinTech Proof-of-Concept Hub.
The FinTech Proof-of-Concept Hub has supported financial technology experiments since 2017. The Payment Innovation Project is designed to accelerate blockchain-based payment innovation, giving the megabanks a formal route to test tokenized payment infrastructure under regulatory oversight.
Japan clarified its stablecoin rules in 2023 through amendments to the Payment Services Act. Those changes created a licensing framework for fiat-pegged stablecoins and introduced the concept of electronic payment instruments.
Under Japan’s framework, approved stablecoins can be issued only by licensed banks, registered money transfer agents and trust companies. That structure helps explain why the country’s stablecoin development is moving through major financial institutions and trust-based issuance models.
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Japan’s stablecoin market gains momentum
The megabank project comes after several yen-backed stablecoin initiatives moved forward under Japan’s clarified rules.
JPYC Inc. announced JPYC in October 2025, describing it as Japan’s first legally recognized yen-denominated stablecoin.
SBI Holdings and Startale Group unveiled JPYSC in February 2026 as a trust bank-backed yen stablecoin designed for institutional and cross-border use cases.
The Japan Blockchain Foundation said in May 2026 that it would issue EJPY, a yen-pegged stablecoin on Japan Open Chain and Ethereum. EJPY is designed as a trust-type yen stablecoin, with the Japan Blockchain Foundation acting as settlor.
Japan’s regulated stablecoin activity also includes dollar-pegged products. USDC became the first dollar-pegged stablecoin approved in Japan in March 2025, with issuance handled by SBI.
After that approval, Ripple and SBI Holdings announced plans to launch the dollar-pegged RLUSD stablecoin in Japan.
The megabanks’ joint plan shows Japan’s largest lenders moving stablecoins toward shared institutional payment infrastructure. The structure centers on regulated issuance, trust arrangements and common governance before the banks begin live transactions.
FAQ
Which banks are involved?
MUFG Bank, Mizuho Bank and Sumitomo Mitsui Banking Corporation.
When is the target launch?
Before the end of fiscal year 2026, which runs through March 2027.
How will the stablecoin be structured?
It is expected to be issued under a trust agreement.
What did the banks say about use cases?
They cited “the potential use of stablecoins across a wide range of use cases.”
This article has been refined and enhanced by ChatGPT.
