Mizuho Bank, Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, Mitsubishi UFJ Trust and Banking, and TISI said on Oct. 16 that they had completed a proof-of-concept from July 17 to July 23, 2026, covering the joint issuance of a stablecoin by multiple banks and its use in cross-border payments. The project was backed by Japan’s Financial Services Agency under the Fintech Proof-of-Concept Hub’s Payment Innovation Project, or PIP. Under the structure, the three banks acted as joint settlors, while Mitsubishi UFJ Trust and Banking served as trustee. The stablecoin was issued as a specified trust beneficiary right under Japan’s Payment Services Act framework based on a trust agreement. The test used cross-border settlement between Mitsubishi Corporation’s bases in Japan and overseas as the use case. Participants said they confirmed both system security and the feasibility of a multi-bank issuance model, and verified the full process of issuance, transfer, and redemption. The three banks had previously said they aim to begin live transactions within fiscal 2026 and formed a joint discussion council, with deposits serving as reserves and circulation limited to users verified by banks.
BlockBeats reported on Oct. 16 that Mizuho Bank, Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, Mitsubishi UFJ Trust and Banking, and TISI said they had completed a proof-of-concept between July 17 and July 23, 2026 for a stablecoin jointly issued by multiple banks and used for cross-border payments.
The project was supported by Japan’s Financial Services Agency through the Fintech Proof-of-Concept Hub’s Payment Innovation Project, or PIP. Under the arrangement, the three banks acted as joint settlors and Mitsubishi UFJ Trust and Banking served as trustee. Based on a trust agreement, the stablecoin was issued as a specified trust beneficiary right under the Payment Services Act framework.
The trial used cross-border settlement between Mitsubishi Corporation’s locations in Japan and overseas as the operating scenario, testing both regulatory and practical feasibility. The parties said they confirmed the security of the system and the viability of a multi-bank joint issuance model, and completed verification of the full lifecycle covering issuance, transfer, and redemption.
The three banks had previously said they plan to begin live transactions within fiscal 2026 and set up a joint discussion council. The design assumes deposits as reserves and circulation limited to users who have completed identity verification through banks, as the group continues work on stablecoin and on-chain finance deployment.
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