MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation are moving their joint stablecoin project toward commercial use, with a target to begin live transactions during fiscal 2026, which runs through March 2027. The three banking groups said the stablecoin will be issued through a trust-based structure, where each institution acts as a joint settlor and a trust bank or similar financial institution serves as trustee.
The banks said the initiative is intended to support a wide range of future payment and settlement use cases. That shifts the project beyond technical testing. Commercial transaction capability is now the clearest near-term objective.
Project shifts from pilot work to launch preparation
To prepare for rollout, the participating institutions have agreed to form a council that will review governance standards and operating frameworks. The group is expected to help build the infrastructure needed before the stablecoin reaches commercial use. The move points to a practical phase of development rather than a limited proof-of-concept exercise.
The collaboration has been building since last year. In October, the three banks started a pilot to examine whether multiple banking groups could jointly issue stablecoins under Japan’s regulatory framework. That pilot focused on stablecoins categorized as electronic payment instruments under Japanese law, testing whether a joint issuance model could remain efficient while meeting legal requirements.
Japan’s Financial Services Agency backed the project in November and said it would verify whether such a system could operate lawfully and appropriately under existing financial rules. The initiative was also included in the FSA’s FinTech Proof-of-Concept Hub, a program that has supported financial technology projects and industry testing since 2017.
Regulatory changes since 2023 opened the market
Japan’s stablecoin sector has expanded steadily since regulatory revisions took effect in 2023. Changes to the Payment Services Act introduced the legal category of electronic payment instruments and gave issuers clearer rules. That gave banks and registered service providers a more defined path to issue and manage stablecoins domestically.
Other projects have already entered the market. JPYC Inc. launched Japan’s first legally recognized yen-denominated stablecoin in October 2025. Earlier this year, SBI Holdings and Startale Group introduced JPYSC, a trust bank-backed stablecoin built for institutional and cross-border transactions.
Competition grows across bank-led and multi-chain projects
Interest in yen-backed stablecoins is also spreading beyond traditional banking groups. Last month, the Japan Blockchain Foundation announced plans to issue EJPY on Japan Open Chain and Ethereum. The entry of Japan’s three largest banks adds a major regulated banking consortium to that competitive field.
With pilot testing already completed, regulatory engagement in place, and launch planning now focused on governance and operations, the joint stablecoin project is moving closer to practical deployment. If the timeline holds, commercial transactions by March 2027 would place the banks’ initiative among the most important regulated digital payment efforts now taking shape in Japan.