Japan's three megabanks will issue a yen stablecoin by March 2027, directly challenging the 84–90% dominance of USD-pegged tokens in the $300B+ market.
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MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation announced Wednesday a joint plan to issue a yen-pegged stablecoin and begin live commercial transactions before March 2027. The three banks signed a memorandum of understanding to form a voluntary council that will study the operational and technical requirements for issuance, they said in a joint release.
The banks will act as joint settlors under a trust agreement, with a licensed trust bank serving as trustee. Japan's fiscal year 2026 ends March 31, 2027, setting the deadline.
The initiative builds on a pilot approved by Japan's Financial Services Agency in November 2025. That experiment tested joint issuance of yen-denominated stablecoins for corporate use, with Mitsubishi UFJ Trust and Banking Corporation managing deposited funds as trust assets. Mitsubishi Corporation used the pilot tokens for cross-border payments between its Japanese and overseas offices, aiming to lower remittance costs.
Japan's amended Payment Services Act, effective since 2023, allows licensed banks, fund transfer operators, and trust companies to issue fiat-pegged digital money redeemable at par. Assets must be held as deposits in a licensed Japanese trust bank.
The Liberal Democratic Party added political support June 1, when a panel proposed promoting yen-based stablecoins for settlements across Asia and creating a legal framework for crypto ETF trading.
JPYC, the leading private yen stablecoin, has a market cap of roughly $18 million. The three megabanks collectively serve hundreds of thousands of corporate clients. A standardized yen stablecoin at that scale offers a direct alternative to USD-pegged tokens for corporate settlements, the banks' joint release said.
The council's work will cover issuance infrastructure, system design, governance, and coordination with other financial institutions. The banks have left the door open for additional participants to join the initiative.
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