Japan’s three largest banks will jointly issue stablecoins

Mitsubishi UFJ Bank and other three major Japanese banks will jointly issue stablecoins pegged to the value of fiat currencies such as the yen and the dollar. Initial use will be in Mitsubishi Corporation’s fund settlements. The three major banks, with over 300,000 major trading partners, are collaborating to promote the widespread adoption of stablecoins in Japan.

Stablecoins are not paper bills or coins like the yen or dollar, but rather a digital payment method used online. To maintain the value of the stablecoin, the issuer holds deposits and government bonds as collateral. The three major banks will standardize stablecoin standards to enable use within and between companies. Using blockchain technology, low-cost settlement will be achieved.

Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, and Mizuho Bank will initially establish a framework for corporate stablecoins that are convertible against the same standards. They plan to initially issue a yen stablecoin, with a dollar stablecoin to follow in the future. Using a system from emerging fintech company Progmat, they will collaborate with the Financial Services Agency of Japan to verify operational issues. Commercialization is expected within this year.

The first phase will allow Mitsubishi Corporation to use stablecoins for internal fund settlements. A public relations official at Mitsubishi Corporation stated, “We are indeed exploring its use for remittances.” The specific method of use is believed to be subject to further verification.

Mitsubishi Corporation has over 240 major business entities. International remittances are routinely required for dividend income, client transactions, acquisitions, and investments. Reducing remittance costs has long been a challenge for Mitsubishi Corporation. If a stablecoin shared by the three major banks with numerous trading partners becomes widely adopted, Mitsubishi Corporation could potentially reduce remittance fees and operational complexity within and outside the company.

The stablecoin will be issued using a so-called “trust-type” approach, in partnership with Mitsubishi UFJ Trust Bank. Trust-type stablecoins are believed to be easily adaptable for large-value remittances and easy for businesses to use as payment channels. The three major banks will also invite other financial institutions to participate.

In Japan, the emerging fintech company JPYC received a registered funds transmission business license from the Financial Services Agency in August 2025.

Currently, cross-border remittances typically use international payment networks like SWIFT, which can incur fees exceeding 10% of the transfer amount and can take several days to process. Using the JPYC stablecoin, for example, a remittance between the Philippines and the United States could be completed in 70 seconds, reducing the cost of a single transaction to less than 1 yen.

Another reason for the three major banks to issue stablecoins is their concern about the monopoly of US-led dollar-pegged stablecoins in the Japanese market. The three major banks will coordinate their efforts to prevent a chaotic coexistence of multiple stablecoins in Japan.