Japan’s three largest banks are collaborating on a new stablecoin that they plan to launch by March 2027.
In a joint statement released, MUFG Bank, Mizuho Bank (NYSE: $MFG), and Sumitomo Mitsui Banking Corporation (NYSE: $SMFG) said that they plan to issue the stablecoin under a trust agreement.
The three banks will serve as joint settlors for the stablecoin, which will be pegged to the Japanese yen currency.
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The banks added that they aim to launch live stablecoin transactions and will establish a council to examine operational frameworks and governance related to the stablecoin’s issuance.
The three banks first joined forces last autumn to pilot the stablecoin project, examining how multiple banking groups can jointly issue stablecoins.
Last November, Japan’s Financial Services Agency (FSA) officially supported the banks’ initiative, saying the stablecoin project aims to verify whether such a system can be executed lawfully and successfully.
The joint project reflects growing demand for yen-denominated stablecoins after Japan clarified its stablecoin regulations in 2023.
This will not be Japan’s first stablecoin. In October 2025, fintech firm JPYC launched the country’s first legally recognized yen-denominated stablecoin (CRYPTO: $JPYC).
