Japan’s Financial Services Agency has officially endorsed a joint stablecoin pilot initiative involving Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group.
The regulator on Friday said that it would provide support as the first project under the Payment Innovation Project (PIP). PIP is a newly established initiative by the regulator to promote innovation in the payment field.
Cryptonews reported last month that the lenders would promote settlements made with pegged cryptocurrencies. The move aims to challenge the dominance of dollar-backed USDT and USDC stablecoins. “The banks will build a structure for corporate clients to allow for stablecoins to be transferred between them along uniform standards, initially issuing a yen-pegged coin and potentially a dollar-pegged coin in the future,” Nikkei reported.
Three of Japan’s largest banks – Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group, are working on a joint project to issue yen-backed stablecoins for Japanese users.
