Japan Approves Major Stablecoin Project Backed by Top Banks

Japan's Financial Services Agency (FSA) has greenlit a consortium of leading financial institutions to issue yen-backed stablecoins, marking a significant leap in modernizing the nation's payment infrastructure. The initiative, dubbed the 'Payment Innovation Project,' will leverage blockchain technology to enhance the speed and cost-efficiency of domestic settlements.

Key participants include Mizuho Bank, Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, Mitsubishi Corporation, and Progmat, MUFG's blockchain-based stablecoin platform. Collectively, these institutions serve over 300,000 corporate clients, positioning the project as a transformative force in Japan's financial ecosystem.

The FSA emphasized robust user-protection measures and system transparency. A pilot phase begins this month, with findings to inform broader adoption. This development follows JPYC's recent launch of Japan's first private yen-backed stablecoin, signaling accelerating institutional crypto adoption.