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Japan’s FSA Backs Multi-Bank Yen Stablecoin Pilot Under New Payment Innovation Project

The supervised trial evaluates whether joint issuance by MUFG, SMBC and Mizuho meets legal and operational standards.

Overview

  • Testing begins in November 2025 and will continue for the foreseeable future under the FSA’s newly launched Payment Innovation Project within its FinTech Proof-of-Concept Hub.
  • The stablecoin will be treated as an electronic payment instrument under Japanese law with the regulator monitoring operations throughout the pilot.
  • Mitsubishi Corporation, Progmat Inc. and Mitsubishi UFJ Trust and Banking are participating, with MUFG’s Progmat platform providing issuance infrastructure and the trust bank handling custodial functions.
  • Planned evaluations include corporate intra- and intercompany settlements and cross-border payments to assess potential efficiency gains for institutional clients.
  • The FSA says it will publish results and compliance findings after the experiment, while media reports suggest a possible March 2026 practical rollout that has not been confirmed by the regulator or banks.