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- Japan’s biggest banks target stablecoin rollout for commercial transactions by 2027.
- MUFG, Mizuho, and SMBC advance joint stablecoin project toward launch.
- Japan’s regulated stablecoin market gains momentum with bank participation.
MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation are targeting 2027 to start commercial transactions with stablecoins using a common digital currency project. The three financial institutions announced their intention to launch live stablecoin transactions in FY26 (ending in March 2027). They hope to take the stablecoin into actual commercial use and to find more uses for payments.
Under the proposed structure, the banks will jointly issue the stablecoin through a trust arrangement. There will be a trust bank or another trustee for each institution, which will be a joint settlor. Furthermore, the banks’ agreement to form a council to lead discussions on governance, as well as planning, will be crucial. Prior to the stablecoin going global, the council will help create the framework necessary for it.
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The move is a major milestone for the Japanese banking industry, which is looking for ways to enhance their digital payment capabilities after the Digital Currency Service Act came into effect in the country.The announcement is a major achievement for the Japanese banking industry, which has been looking for ways to expand their digital payment capabilities since the Digital Currency Service Act came into effect in the country. It also signals the trust in stablecoins which has been increasing since the country’s regulatory reforms.
Banks Move Beyond Pilot Testing
The project follows a pilot which began in October last year. In that time, the three banking groups analyzed the possibility of jointly issuing stablecoins, which fall under the category of electronic payment instruments in Japan. Technical structures, operational needs and compliance were assessed. The announcement now suggests that the work has now passed the stage of early testing and is now advancing towards commercial deployment.
The project was supported by the Financial Services Agency of Japan in November. The move would help to answer the question of whether such a collectively issued stablecoin system would be able to work within the existing legal framework in the republic, the regulator said. Moreover, the project was included in the FSA’s FinTech Proof-of-Concept Hub. Since 2017 the program has been supporting fintech experimentation and innovation.
Regulatory Reforms Open New Opportunities
In 2023, Japan passed amendments to the Payment Services Act to create a more clear-cut legal definition of stablecoins. The changes laid down the concept of electronic payment instruments and provided an avenue for regulated payment issuance. This has led to a surge of interest in yen-denominated stablecoins in the financial world.
There are several projects that have already been initiated based on the new guidelines. In October 2025, JPYC Inc launched Japan’s first legal, yen-backed stablecoin. SBI Holdings and Startale Group recently introduced JPYSC, which is focused on institutional and cross-border payment use cases.
Competition Grows in Japan’s Stablecoin Sector
With the increase in adoption, more people are entering the market. In the previous month, the Japan Blockchain Foundation revealed its intention to launch the EJPY, a trust-type stablecoin on the Japan Open Chain and Ethereum chains.
In that background, the three biggest banking groups in Japan are readying their commercial launch. They could play a part in increasing business adoption of stablecoins, and help consolidate the regulated digital asset ecosystem in payments and settlements.
As Japan’s digital asset ecosystem evolves further, the planned rollout in 2027 underscores the major banks’ efforts to seize opportunities in the real world for blockchain-based digital assets.
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