Japan’s FSA Endorses Yen-Backed Stablecoin Pilot with Major Banks
Japan’s Financial Services Agency has greenlit a collaborative stablecoin initiative involving Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho Financial Group. The regulator will support the project under its newly launched Payment Innovation Project (PIP), aimed at advancing payment solutions. The FSA emphasized the pilot’s potential to enhance user convenience and corporate efficiency in Japan.
The three megabanks are developing a shared framework for issuing yen-pegged stablecoins, with plans to potentially expand to dollar-backed variants. The initiative, dubbed MOVE, seeks to counter the dominance of USDT and USDC in the stablecoin market. Corporate clients will initially use the stablecoins for interbank transfers under standardized protocols, though formal announcements from the banks remain pending.
