Japan’s Three Largest Banks to Jointly Issue Yen-Backed Stablecoin by 2027

MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation have formed a joint council to co-issue a yen-backed stablecoin by March 2027. The initiative, operating under Japan's Financial Services Agency (FSA) Payment Innovation Project, marks a significant step toward institutional adoption of stablecoins in Asia.

The stablecoin will be issued under a trust agreement, with all three banks acting as joint settlors and a trust bank serving as trustee. Collectively, these institutions oversee more than $7 trillion in assets, making this the largest stablecoin initiative in Japan to date.

The move follows a successful late-2025 pilot that confirmed the legal and operational feasibility of multi-bank stablecoin issuance. Japan's regulatory framework for stablecoins, established under the amended Payment Services Act in June 2023, provides the foundation for this landmark collaboration.