Three Japanese megabanks form a council to develop a jointly issued stablecoin under a trust model. The token targets March 2027 launch, testing Japan's stablecoin framework.
MUFG Bank, together with Mizuho and Sumitomo Mitsui Banking Corporation, formed a council to develop a stablecoin they plan to issue jointly by March 2027. The token will be issued under a trust agreement, with the three banks as joint settlors and a trust bank or similar institution acting as trustee, the banks said.
Japan's stablecoin law, effective since 2023, allows only licensed trust companies to issue such tokens. By pooling their balance sheets into a single trust structure, the three megabanks aim to create a yen-denominated digital payment token that could settle transactions across their combined customer networks. A potential advantage: the joint setup spreads credit risk across the issuers, making the stablecoin more resilient than a single-bank product.
The 2027 target suggests the council expects a multiyear process for legal, operational and technology design. The trust model itself is not new. Japanese trust banks already manage assets on behalf of institutions. Adapting that framework for a stablecoin requires amendments to settlement rules and perhaps new Bank of Japan guidance. The council said it will propose regulatory changes where needed.
For the crypto sector in Japan, this is a big step. A widely used bank-backed stablecoin could challenge existing yen-pegged tokens such as JPYC and even compete with dollar-backed entrants like USDC in domestic e-commerce and remittance flows. It also signals that Japan's largest lenders see stablecoin issuance as a strategic business line, not a compliance exercise.
MUFG carries an Alpha Score of 57 out of 100 with a Moderate label, reflecting its position in the Financial Services sector. The stock page is here. The council's work will test whether traditional banks can match the speed and openness of crypto-native stablecoins while keeping the trust structure simple enough for mass adoption.
The group plans to publish a detailed white paper later this year ahead of a proof-of-concept pilot in 2026.
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