Japan's Megabanks to Launch Yen Stablecoin by March 2027

Japan's three largest banks - Mitsubishi UFJ (MUFG), Sumitomo Mitsui (SMBC), and Mizuho - are planning to launch a yen-pegged stablecoin by March 2027, according to reports from Nikkei. The megabanks have been jointly testing stablecoin issuance and settlement since November 2025 under the FSA's pilot program.

The banks will establish a council to finalize operational frameworks after completing months of testing. They plan to create a unified framework for stablecoin transactions, allowing corporate clients to transfer digital assets seamlessly between institutions. Progmat, a Tokyo-based blockchain infrastructure platform, will support the project.

MUFG, SMBC, and Mizuho collectively serve over 300,000 major corporate clients across Japan, with Mitsubishi Corporation reportedly among the first intended adopters of the stablecoin. Project Pax targets one trillion yen in business-to-business stablecoin volume by 2028, roughly $6.5 billion.