Japan’s top 3 banks to issue joint stablecoin by March

Japan’s three largest banks—Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group, and Mizuho Financial Group—have announced that they plan to jointly launch a stablecoin within the current fiscal year, which concludes in March.

New council formed for bank collaboration

According to an MUFG statement published on its website, the three banks will establish a council to coordinate preparations and evaluate the operational framework required for issuing a stablecoin. The statement noted that the banks will act as co-founders, while a trust bank or similar institution is set to serve as trustee.

MUFG explained that the three banks will take on founding roles while a trust bank or equivalent organization will provide trustee services.

MUFG is a major force in Japanese banking, active in corporate finance, payment systems, and digital financial services. Its partners, SMBC and Mizuho, similarly rank among the country’s top financial groups.

Regulatory backing grows stronger

Japan’s Financial Services Agency signaled its support for the banks’ planned stablecoin initiative as early as last November. More recently, the ruling Liberal Democratic Party stated that government promotion of yen-based stablecoin usage is necessary.

Glossary: A stablecoin is a digital token whose value is typically pegged to a fiat currency or similar traditional asset. This structure aims to reduce price volatility and enable steadier use in digital payments.

The Liberal Democratic Party in Japan emphasized the need for state support of yen-based stablecoins.

Dollar dominance persists across stablecoin market

Stablecoin markets remain overwhelmingly dominated by U.S. dollar–pegged tokens. USDT from Tether and USDC from Circle together account for 84% of the global stablecoin market, highlighting the limited presence of yen-backed products on a global scale.

All yen-pegged tokens combined total less than $50 million of the industry’s $311 billion in assets. JPYC, issued by a Tokyo fintech company and boasting a market cap of about $18 million, stands as the most notable yen stablecoin to date.

CategoryDataTotal stablecoin market$311 billionCombined USDT and USDC share84%Size of yen-pegged tokensBelow $50 millionJPYC market capAbout $18 million

The three megabanks’ initiative signals a new push within Japan’s financial sector to scale yen-based digital payment instruments through institutional collaboration. Details about the operational model and specific use cases await further clarification as the council begins its work.

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