Japan’s three megabanks to launch joint yen stablecoin by 2027

MUFG Bank, Mizuho Bank and Sumitomo Mitsui Banking Corporation plan to begin live commercial transactions using a jointly issued yen stablecoin by the end of the fiscal year ending March 2027. The banks will issue the token under a trust agreement, with the three banks named as joint settlors and a trust bank or similar institution to act as trustee.

The banks aim to launch transactions during fiscal 2026 and will establish a council to develop operational frameworks and governance before issuance. The initiative began with a pilot in October to study how multiple banking groups can jointly issue stablecoins classified under Japanese law as electronic payment instruments.

In November, Japan’s Financial Services Agency gave formal backing to the project and included it in the agency’s FinTech Proof-of-Concept Hub, a program that supports fintech experiments.

Under the planned trust arrangement, the three banks will serve as joint settlors while a trust bank or similar trustee will hold and manage the reserves or legal arrangements required by the trust structure. The banks are examining commercial uses for the token, including payments and settlement functions.

The project follows 2023 amendments to the Payment Services Act that introduced the category of “electronic payment instruments” and created a framework for registered providers and banks to issue and manage stablecoins.

Several yen-denominated stablecoins have emerged since the regulatory changes. JPYC launched a legally recognized yen stablecoin in October 2025. SBI Holdings and Startale Group unveiled a trust-backed token, JPYSC, in February. The Japan Blockchain Foundation has announced plans to issue a yen-pegged stablecoin called EJPY.

The megabanks have not disclosed technical details such as which blockchain platform will be used, how the coin will maintain its peg to the yen, or the identity of the trustee. The council will address interoperability, custody arrangements, regulatory compliance and governance ahead of any commercial rollout.

The banks plan to begin live commercial transactions by March 2027 and will complete operational and legal preparations through the council before issuing the stablecoin.