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Japan's Top Banks Plan Joint Stablecoin Launch: Nikkei
Mitsubishi UFJ, Sumitomo Mitsui and Mizuho Financial Groups aim to create a shared framework for stablecoin issuance and transfer, according to a story in Nikkei.
Oct 17, 2025, 1:43 p.m.
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What to know:
- Japan's Mitsubishi UFJ, Sumitomo Mitsui and Mizuho Financial Groups plan to launch a stablecoin, Nikkei reported Friday.
- The stablecoin will initially be pegged to the Japanese yen, with potential for a dollar-denominated version.
- Stablecoin adoption is spreading rapidly as nation's put regulations in place.
Japan’s three largest banking groups are reportedly planning to jointly launch a stablecoin as institutional interest in blockchain-based digital money grows.
According to a Friday report from the Nikkei, Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group and Mizuho Financial Group will create a shared framework for issuing and transferring stablecoins among their corporate clients. The tokens will be pegged to real-world currencies, starting with the Japanese yen, with a dollar-denominated version potentially to follow.
STORY CONTINUES BELOW
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The stablecoins will be built on a system that allows interoperability between banks under common technical and legal standards,, the report said. While details on the infrastructure remained limited, the initiative marks a coordinated effort to digitize interbank settlements in a way that mirrors existing fiat rails. Notably, MUFG founded a blockchain infrastructure and tokenization platform Progmat in 2023, backed by a wide consortium of Japanese institutions.
The move comes as stablecoin adoption is rapidly spreading globally, with nation's putting regulations in place. U.S. dollar-pegged tokens dominate the market, with Tether's USDT and Circle's USDC taking up the bulk of the $300 billion sector.
A group of nine European banks, including heavyweights ING and UniCredit, reportedly plan to issue a euro stablecoin to counter the dominance of U.S. dollar-backed tokens. Major U.S. banks are also mulling issue a stablecoin jointly.
In August, fintech firm JPYC was reportedly obtained license as a money transfer operator with the Financial Services Agency (FSA), a necessary step for offering its Japanese yen-backed token legally. Japanese financial giant SBI Holdings also announced plans to distribute Ripple’s U.S. dollar-pegged stablecoin (RLUSD) in Japan as early as the first quarter of 2026, pending regulatory clearance.
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