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Japan FSA Backs Multi-Bank Yen Stablecoin Pilot Starting This Month

The new Payment Innovation Project will test whether joint issuance by Japan’s three megabanks can operate within Japan’s legal framework.

Overview

  • MUFG, SMBC and Mizuho received regulator support to run a proof‑of‑concept for a yen‑pegged stablecoin beginning in November 2025 with no fixed end date.
  • The FSA said it will monitor operations and publish results and compliance findings after the experiment.
  • The token will be treated as an electronic payment instrument, with testing focused on cross‑border, intercompany and corporate settlement use cases.
  • Mitsubishi Corporation and Progmat will support issuance, while Mitsubishi UFJ Trust and Banking will manage trust functions for asset protection.
  • Nikkei reports the banks are aiming for practical use by March 2026, a timeline not formally endorsed by the regulator, and the effort follows JPYC’s recent yen stablecoin launch.