Nikkei reported that Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group (SMFG), and Mizuho Financial Group are forming a consortium to issue a jointly operated stablecoin by the end of fiscal year 2026. The token will initially be pegged to the yen, with a dollar version later, and will run on Progmat, a distributed ledger platform by MUFG and NTT Data. The stablecoin targets corporate settlements among their combined 300,000+ enterprise clients, avoiding retail consumer onboarding friction. The FSA's decision to run a regulatory pilot with all three banks simultaneously indicates a preference for a single shared standard rather than competing tokens. This aligns with Japan's broader shift toward common stablecoin infrastructure. The plan follows a global trend where banks like JPMorgan (JPMD) and SoFi (SoFiUSD) are issuing deposit tokens directly, moving away from third-party tokens like USDT and USDC. Stablecoins have surpassed ACH network volumes in the US, intensifying competition with legacy payment systems. Key unknowns include the governance structure, which will impact replicability for other multi-bank stablecoin projects.

Key facts

• MUFG, SMFG, Mizuho to launch joint stablecoin by fiscal 2026.
• Token initially pegged to yen, later dollar; runs on Progmat.
• Targets 300,000+ enterprise clients for corporate settlements.
• FSA pilot with all three banks signals shared standard preference.
• Follows global trend of banks issuing direct deposit tokens.
• Stablecoins surpass ACH volumes in US, pressuring legacy payments.

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