Japanese mega-banks complete joint yen stablecoin trials

Three major Japanese banks—Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation—along with Mitsubishi UFJ Trust and Banking Corporation and TISI, have successfully completed a proof-of-concept for the joint issuance of yen-denominated stablecoins.

The demonstration, conducted in July 2026, focused on the feasibility of a joint issuance model and its application in international settlements. Specifically, the participants tested the entire process of issuance, transfer, and redemption through simulated cross-border payments between Mitsubishi Corporation’s Japanese and overseas locations. The project utilized a trust scheme where the three mega-banks act as joint settlors and Mitsubishi UFJ Trust and Banking serves as the trustee, issuing the coins as “specified trust beneficiary rights” under the Payment Services Act.

The participants confirmed the safety and reliability of the system, gaining practical insights into issuance and distribution. The project was supported by the Financial Services Agency’s “Payment Advanced Project (PIP).” The banks aim to begin actual transactions within fiscal year 2026, planning to use bank deposits as backing assets for users who have completed identity verification through their respective banks.