Japan’s Megabanks Target Joint Stablecoin Launch by March 2027

Japan’s three largest banking groups—MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation (SMBC)—plan to begin live commercial transactions using a jointly issued stablecoin during the fiscal year ending March 2027.

In a joint announcement released on Wednesday, the banks said the stablecoin will be issued under a trust structure, with the three institutions acting as joint settlors. A trust bank or similar financial institution will serve as trustee.

The banks aim to launch commercial stablecoin transactions during fiscal year 2026, which concludes in March 2027, as part of broader efforts to explore stablecoin adoption across multiple payment and settlement use cases.

Governance framework under development

As part of the initiative, the three banks have agreed to establish a dedicated council to develop governance standards and operational frameworks ahead of the stablecoin’s issuance.

The project builds on work that began in October 2025, when the banking groups launched a pilot to examine how multiple institutions could jointly issue stablecoins classified as electronic payment instruments under Japanese law.

In November, Japan’s Financial Services Agency (FSA) formally endorsed the initiative, stating that the project would help determine whether such a model could operate in compliance with existing financial regulations.

The initiative is being conducted within the FSA’s FinTech Proof-of-Concept Hub, a regulatory program that has supported financial technology experimentation since 2017.

Stablecoin regulation drives market activity

The latest development reflects growing momentum in Japan’s stablecoin sector following regulatory reforms introduced in 2023.

Amendments to the country’s Payment Services Act established a legal framework for “electronic payment instruments,” allowing licensed financial institutions and service providers to issue and manage stablecoins.

Since then, several projects have emerged in the market.

In October 2025, fintech company JPYC Inc.announced the launch of JPYC, described as Japan’s first legally recognized yen-denominated stablecoin.

Earlier this year, SBI Holdings and Startale Group unveiled JPYSC, a trust-bank-backed stablecoin designed for institutional and cross-border transactions.

Competition intensifies in Japan’s stablecoin market

Japan’s stablecoin ecosystem continues to expand as both private-sector and industry-backed initiatives move toward deployment.

Last month, the Japan Blockchain Foundation announced plans to issue EJPY, a yen-pegged stablecoin on both Japan Open Chain and Ethereum.

The project is being developed as a trust-based stablecoin structure, with the foundation acting as the settlor.

The entry of Japan’s largest banking institutions into the sector is expected to further accelerate the development of regulated digital payment infrastructure and reinforce the country’s position as one of the most advanced stablecoin regulatory markets globally.