Japan’s megabanks plan yen-pegged stablecoin launch in fiscal 2026

MUFG Bank, Mizuho Bank and Sumitomo Mitsui Banking Corporation said they plan to begin live commercial transactions using a jointly issued stablecoin during fiscal 2026, which runs through March 2027. The banks said the token would be issued under a trust agreement with the three lenders acting as joint settlors, while a trust bank or similar institution would serve as trustee. They also agreed to establish a council to examine operational frameworks and governance ahead of issuance. The plan builds on work that began in October, when the three banks launched a pilot to study how multiple banking groups could jointly issue stablecoins classified as electronic payment instruments under Japanese law. In November, Japan’s Financial Services Agency backed the initiative through its FinTech Proof-of-Concept Hub, saying the project would test whether such a system could be carried out lawfully and appropriately under existing regulations. The effort comes as yen-denominated stablecoin activity accelerates after Japan clarified its rules in 2023 through amendments to the Payment Services Act. Those changes introduced the category of electronic payment instruments, allowing registered service providers and banks to issue and manage stablecoins. Since then, JPYC Inc., SBI Holdings and Startale Group, and Japan Blockchain Foundation have each announced yen stablecoin initiatives, underscoring broader momentum in the market.