Japan's three megabanks to launch yen stablecoin by 2027

Three of Japan's largest banking groups plan to jointly issue a yen-pegged stablecoin and begin live commercial transactions by the end of the fiscal year in March 2027. Mitsubishi UFJ Financial Group's MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation announced the initiative in a joint statement on Wednesday, June 10, 2026.

The banks intend to issue the stablecoin under a trust agreement, with the three institutions serving as joint settlors and a trust bank acting as trustee. They have agreed to establish a council to examine operational frameworks and governance in preparation for the launch. The project aims to explore the potential use of stablecoins across a wide range of applications.

This initiative has been under development for several months, building on joint pilot tests that began in the fall of 2025. Japan's Financial Services Agency (FSA) has been involved since at least November 2025, overseeing the initial tests geared toward a joint issuance. The regulator has actively encouraged the banks to collaborate on a single product rather than launch competing stablecoins individually, viewing a bank-led stablecoin as a potential piece of financial...