Japan’s three top banks aim to launch live transactions with a jointly issued stablecoin in fiscal 2026 as they build a shared framework.
Japan’s stablecoin developments took a step further as MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation, the banking arms of the three largest financial institutions in Japan, revealed their plans to initiate practical usage in fiscal year 2026.
The three banks said in a June 10 statement that they signed a memorandum of understanding to create a voluntary council to examine the stablecoin’s operations and governance.
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The stablecoin project, which isn’t yet named, will see its introduction through a trust contract, whereby the three financial institutions, serving as settlors of the trust in common and a trust bank, will issue the stablecoins in accordance with the agreement.
The banks didn’t give a launch date, but fiscal 2026 in Japan runs through March 2027.
Japan megabanks move from trial to live use
The council will examine possible issuance infrastructure, system design, schemes and governance structures for the stablecoin, per the statement.
The banks said they will continue preparing the council while taking into account relevant laws, regulations and market trends, though no details were provided. They also said the council will look at ways to work with other financial institutions and related stakeholders that may join later.
The announcement comes as Japan pushes more bank-linked digital payment experiments, including stablecoins and tokenized deposits.
Japan’s yen stablecoin market is already live, but still tiny compared with the global dollar stablecoin market. JPYC, a Japanese yen-pegged stablecoin issuer, has about $20.5 million, per CoinGecko data.
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