The three major banks in Japan plan to jointly issue stablecoins, initially pegged to the yen, with a potential future version pegged to the dollar

Japan's three major banks will jointly issue stablecoins, marking the country's shift from regulatory leadership to actual participation in the digital currency market.

According to a report by Nikkei News on Friday, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group will jointly launch a digital currency pegged to the value of the yen.

These three banks will build infrastructure for corporate clients, allowing stablecoins to be transferred between clients according to a unified standard. Nikkei News stated that they will initially issue yen-pegged stablecoins, with the possibility of launching dollar-pegged stablecoins in the future.

This move comes as Japan's stablecoin market reaches a breakthrough moment. Japan is the first country in the world to establish a regulatory framework for stablecoins, but the yen has previously lacked a blockchain-based representative.

Currently, several Japanese institutions are actively positioning themselves in the stablecoin market. The fintech startup JPYC has obtained regulatory approval this week and plans to issue the country's first yen stablecoin this fall, while Tokyo-based Monex Group is also considering similar initiatives.

Three Major Banks Build Unified Standards

According to Nikkei News, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group will jointly construct a stablecoin transfer system, allowing corporate clients to conduct digital currency transactions according to a unified standard. Initially, yen-pegged stablecoins will be launched, with potential expansion to dollar-pegged stablecoins in the future. This initiative aims to provide corporate clients with more efficient payment and settlement tools.

Japanese fintech startup JPYC has previously obtained regulatory approval, becoming the first company authorized to issue yen stablecoins. The company's CEO Noritaka Okabe stated at a press conference that the JPYC stablecoin will be fully convertible with the yen, supported by domestic savings and Japanese government bonds.

The company plans to officially issue the stablecoin this fall, aiming to reach an issuance scale of 1 trillion yen (6.81 billion USD) within three years. The stablecoin is expected to attract institutional investors such as hedge funds and family offices, with application scenarios including arbitrage trading, cross-border remittances, and corporate payments. JPYC will adopt a trust-based structure and issue on the Progmat Coin platform of Mitsubishi UFJ Trust Bank.

Monex Group Observes the Market

Tokyo-based financial services company Monex Group is considering launching a yen-pegged stablecoin. Monex Group Chairman Oki Matsumoto told local media that this move could enhance international remittances and corporate settlements denominated in yen.

"Issuing stablecoins requires a lot of infrastructure and capital, but if we don't handle them, we will be left behind," Matsumoto stated. Although the company has not fully committed to issuing, Matsumoto said Monex "will respond appropriately" to this emerging market opportunity.

Startale Group's Japan Country Manager Takashi Tezuka stated that the gap between Japan and the United States in stablecoins reflects deeper differences. He noted that the latest GENIUS Act in the U.S. has received a mixed response of relief and curiosity Tezuka said that Japan is the first country to establish a regulatory framework for stablecoins, but until now, the yen has not had a blockchain-based representation. After years of infrastructure development, Japan is preparing to shift from regulatory caution to active participation in digital finance.

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