Japan’s three largest banking groups are reportedly considering jointly launching a stablecoin as institutional interest in the blockchain-based digital currency increases.
According to a Friday report from Nikkei, Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group and Mizuho Financial Group will create a common framework for the issuance and transfer of stablecoins between their corporate clients. The tokens will be pegged to real-world currencies, starting with the Japanese yen, and a dollar-denominated version could follow.
Stablecoins will be built on a system that allows interoperability between banks under common technical and legal standards, the report said. Although details on infrastructure remain limited, the initiative marks a coordinated effort to digitize interbank settlements in a way that mirrors existing fiduciary rails. Notably, MUFG founded blockchain infrastructure and tokenization platform Progmat in 2023, supported by a large consortium of Japanese institutions.
The move comes as stablecoin adoption rapidly spreads globally with countries implementing regulations. US dollar-pegged tokens dominate the market, with Tether’s USDT and Circle’s USDC taking up the majority of the $300 billion sector.
A group of nine European banks, including heavyweights ING and UniCredit, are reportedly considering issuing a euro stablecoin to counter the dominance of US dollar-backed tokens. Major US banks are also considering jointly issuing a stablecoin.
In August, financial technology company JPYC reportedly obtained a money transfer operator license from the Financial Services Agency (FSA), a necessary step to legally offer its Japanese yen-backed token. Japanese financial giant SBI Holdings also announced plans to distribute Ripple’s US dollar-pegged stablecoin (RLUSD) in Japan as early as the first quarter of 2026, pending regulatory approval.
