Japan's three largest banks, Sumitomo Mitsui Banking Corp., Mizuho Bank, and MUFG Bank, have successfully completed a proof of concept for a jointly issued yen-denominated stablecoin. The pilot, conducted from July 17 to 23, tested the stablecoin's use in cross-border payments, simulating transactions between Mitsubishi Corp.'s domestic and international branches.
The banks confirmed the feasibility of a multi-bank issuance model and plan to continue assessments for real-world applications. The stablecoins were issued as specified trust receivable rights under Japan's Payment Services Act, with the banks acting as joint principal trustees and Mitsubishi UFJ Trust as agent trustee.
The pilot included issuance, transfer, and redemption processes, along with anti-money laundering checks. The banks aim to launch live transactions in fiscal 2026, which runs through March 2027, and have set up a council to study related issues. The design may evolve, but currently, the stablecoin would have no circulation cap and would circulate among verified users.
Japan already has a regulated yen stablecoin from fintech JPYC, which launched last year. The successful pilot marks another step toward broader adoption of digital currencies in the country's financial sector.