Japanese financial giants Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho are joining forces to create a stablecoin backed by the yen. According to Nikkei, the three banks are preparing a common framework to issue and transfer these tokens between institutions, in an interoperable system designed to mimic the fiat currency circuits.
This project, at first glance, could disrupt traditional finance in Japan. These stablecoins will be issued under shared technical and legal standards, ensuring compatibility between institutions. An American dollar version is already in the works, proof that ambitions exceed national borders.
Japan is accelerating on digital currency
This initiative comes at a time when Japan is showing favorable signals towards the tokenization of finance. Mitsubishi UFJ (MUFG) had already launched Progmat in 2023, a tokenization platform supported by several major local institutions. The new project is in line with this continuity: transforming interbank settlements through blockchain while remaining aligned with strict Japanese regulatory requirements.
The country’s legal framework now encourages the issuance of regulated stablecoins, and several players are already positioning themselves. Fintech JPYC recently obtained a money transfer operator license from the Financial Services Agency (FSA), allowing it to legally offer its yen-indexed token. Meanwhile, SBI Holdings plans to distribute Ripple’s US dollar stablecoin (RLUSD) from the first quarter of 2026, subject to regulatory approval.
A response to the dominance of the dollar
Globally, the stablecoin market exceeds $300 billion, largely dominated by Tether (USDT) and Circle (USDC). Faced with this dollar dominance, local initiatives are proliferating. In Europe, a consortium of nine banks, including ING and UniCredit, is also preparing a stablecoin in euro to regain control over digital monetary sovereignty.
Japan, on the other hand, aims to avoid letting foreign giants dictate the pace. By creating a national stablecoin, the country’s three largest banks seek to offer a credible alternative, backed by their reputation and financial power.
The beginning of a digital era for Japanese finance
The introduction of a common bank stablecoin could profoundly transform interbank payments and the circulation of digital currency in Japan. For businesses, this would mean faster transfers, reduced costs, and seamless integration with emerging blockchain systems.
Between institutional security and technological innovation, Japan is forging its own path towards decentralized finance. A pragmatic strategy: rather than fight the crypto revolution, banks choose to take control.
