Japan's Top 3 Banks Set Council to Jointly Issue Stablecoin by March 2027
Japan's three largest banks—MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation (SMBC)—have established a council to develop operational frameworks for jointly issuing a stablecoin, targeting a launch by the end of fiscal year 2026 (by March 2027). The stablecoin will be issued under a trust agreement, with the three banks as joint settlors and a trust bank as trustee. This initiative follows a pilot project in late 2025 that examined regulatory and practical compliance for joint stablecoin issuance. The project operates under the Financial Services Agency's Payment Innovation Project, a program accelerating blockchain-based payment innovations. Since Japan clarified stablecoin regulations in 2023 with amendments to the Payment Services Act, which require stablecoin issuers to be licensed banks, registered money transfer agents, or trust companies, institutional stablecoin activity has surged. Notable developments include JPYC Inc.'s launch of the first legally recognized yen stablecoin in October 2025, SBI Holdings and Startale Group's JPYSC in February 2026, and the Japan Blockchain Foundation's EJPY in May 2026. Additionally, USDC became the first dollar-pegged stablecoin approved in Japan in March 2025, followed by Ripple and SBI Holdings' plan to launch RLUSD. The trio's collaboration signals a major step toward mainstream stablecoin adoption in Japan's regulated environment.
Key facts
- MUFG, Mizuho, and SMBC formed a council for joint stablecoin issuance.
- Target launch by March 2027 under a trust agreement structure.
- Follows 2025 pilot and Japan's 2023 stablecoin licensing regime.
- Other yen stablecoins: JPYC (Oct 2025), JPYSC (Feb 2026), EJPY (May 2026).
- USDC approved in Japan in Mar 2025; RLUSD planned by Ripple and SBI.