Japan’s financial sector is taking significant steps toward integrating cryptocurrency technologies, with three major banks planning to jointly issue a yen-pegged stablecoin. This initiative underscores the country’s growing commitment to advancing blockchain adoption within its corporate and banking infrastructure, aiming to streamline payments and reduce transaction costs across a broad client base.

Japan’s top banks—MUFG, SMBC, and Mizuho—are collaborating on a yen-pegged stablecoin project to modernize corporate settlements.
The stablecoin will be built on MUFG’s Progmat platform, with plans to enable interoperability within the Japanese financial system.
Mitsubishi Corp. will be the first to incorporate the stablecoin for global subsidiaries, targeting more efficient international transactions.
This initiative could pave the way for Japan’s first bank-backed stablecoin network under a unified regulatory framework.
The move signifies a broader push among Japanese institutions to embrace stablecoins amid regulatory developments and growing demand for digital assets.

Japanese banks join forces on yen-pegged stablecoin

Three of Japan’s leading financial institutions—Mitsubishi UFJ Financial Group (MUFG), Bank Sumitomo Mitsui Banking Corp. (SMBC), and Mizuho Bank—are planning to jointly develop a yen-based stablecoin. Launched via MUFG’s stablecoin platform Progmat, the project aims to modernize corporate settlement processes and slash transaction costs across business operations. The consortium is targeting a public rollout by year’s end.

The banks, which manage over 300,000 corporate clients, intend to standardize the token to ensure payment interoperability inside and between firms. Mitsubishi Corp., with its extensive international subsidiaries, will be the first to utilize this stablecoin for internal settlements, streamlining cross-border transactions involving dividends, acquisitions, and customer payments—reducing both fees and administrative hurdles.

If successful, the project could establish Japan’s pioneering bank-backed stablecoin network, with a unified framework that might serve as a model for wider institutional adoption. While responses from MUFG, SMBC, and Mizuho are pending, the move highlights Japan’s ongoing efforts to integrate digital currencies into its financial ecosystem.

MUFG’s Progmat platform and broader stablecoin ambitions

The announcement follows MUFG’s earlier launch of the Progmat Coin platform, introduced in June, which facilitates the issuance of yen-pegged stablecoins on multiple blockchain networks including Ethereum, Polygon, Avalanche, and Cosmos. MUFG plans to expand network support in the future, emphasizing its commitment to fostering a robust blockchain-based payment infrastructure.

Additionally, in September, Binance Japan announced a collaboration with Mitsubishi UFJ Trust and Banking Corp. to explore the issuance of stablecoins leveraging the Progmat platform. Binance Japan’s general manager, Takeshi Chino, highlighted stablecoins’ vital role in enhancing the broader financial ecosystem and supporting the growth of Web3 adoption in Japan.

The evolving stablecoin landscape in Japan

Japan’s push toward yen-pegged stablecoins reflects a broader institutional momentum. In August, the Financial Services Agency (FSA) revealed it was preparing to approve the issuance of yen-backed stablecoins, with fintech firm JPYC set to spearhead the rollout. Meanwhile, the Monex Group is considering launching its own yen-pegged stablecoin, recognizing the importance of staying competitive amid the rising crypto adoption in the region.

As Japan advances its stablecoin initiatives, industry leaders acknowledge the need for substantial infrastructure and capital investment to realize these digital currency projects fully. The country’s proactive stance on crypto regulation and blockchain innovation signals its intent to become a prominent hub for cryptocurrency and digital asset adoption in Asia.