<div id="readability-page-1"><div><div><p>A shared digital yen token is moving from pilot testing into a structured rollout plan, as Japan’s three biggest banks prepare to jointly issue a stablecoin designed for corporate payments and cross-border settlement under regulatory supervision.</p><h2>Three Megabanks Align On Shared Digital Yen System</h2><p>Japan’s banking heavyweights — Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group — are nearing a basic agreement to jointly issue a stablecoin pegged initially to the yen, with a US dollar version expected later.</p><div><div><blockquote><div dir="ltr" lang="en"><p>🇯🇵 JAPAN MEGABANKS ARE MOVING ON STABLECOINS</p><p>MUFG, SMBC, and Mizuho are reportedly planning to issue a joint stablecoin by fiscal 2026.</p><p>Bank-led blockchain rails are moving from theory to real payment infrastructure, right before our eyes. pic.twitter.com/4O9Werapdw</p></div>— CryptosRus (@CryptosR_Us) June 9, 2026</blockquote></div></div><p>The plan follows a regulatory pilot that has been running since November 2025 under the oversight of Japan’s Financial Services Agency, which has encouraged the banks to develop a unified system rather than competing individual tokens.</p><p>The project is now shifting from experimentation to coordinated infrastructure design, including the formation of a dedicated council to manage operations and commercial rollout.</p><h2>Corporate Payments First As 300,000 Firms In Focus</h2><p>The initial focus is firmly on business users rather than retail consumers.</p><p>The combined client base of the three banks spans more than 300,000 companies, providing an immediate distribution channel for corporate settlement use cases.</p><p>Early implementation plans include internal and cross-subsidiary payments for large enterprises, with Mitsubishi Corporation expected to be among the first adopters, using the token to streamline dividend flows, acquisitions, and cross-border transfers across its global network.</p><div><div><blockquote><div dir="ltr" lang="en"><p>Japan's Big 3 Banks To Launch Joint Yen Stablecoin By FY2026</p><p>MUFG, SMBC and Mizuho are joining forces on a yen-backed stablecoin, per Nikkei.</p><p>🔹 Peg: Yen first, dollar version possible later<br/>🔹 Platform: Built on Progmat, MUFG's own blockchain. Not Ripple, not XRP<br/>🔹 Reach:… pic.twitter.com/AJsfdO1oga</p></div>— Crypto Patel (@CryptoPatel) June 10, 2026</blockquote></div></div><p>Under a broader initiative known as Project Pax, the consortium is targeting up to one trillion yen in annual business-to-business stablecoin transactions by 2028.</p><h2>FSA Guided Pilot Moves Into Structured Rollout</h2><p>The regulatory framework has played a central role in shaping the direction of the project.</p><p>Since late 2025, the Financial Services Agency has been actively involved in guiding testing under its fintech support programme, including the Payment Innovation Project, which promotes blockchain-based settlement systems.</p><p>Japan’s legal framework, established in 2022, already recognises stablecoins as digital money issued only by licensed banks and trust companies.</p><p>This structure has allowed the megabanks to progress within a regulated environment, while the FSA’s preference for a unified approach has helped push the consortium towards a shared issuance model.</p><h2>Progmat Platform Set To Anchor Token Infrastructure</h2><p>The stablecoin will operate on Progmat, a distributed ledger platform developed by Mitsubishi UFJ Financial Group and NTT Data.</p><p>The system is designed for regulated financial institutions and supports interoperability across multiple blockchains, including Ethereum, Polygon, Avalanche, and Cosmos.</p><div><div><blockquote><p dir="ltr" lang="en">🇯🇵 Japan's largest bank Mitsubishi UFJ Financial Group will soon begin issuing stablecoins through it's own blockchain platform Progmat - the bank is currently negotiating with issuers of popular stablecoins. pic.twitter.com/wqCnNxKQSo</p>— Sjuul | AltCryptoGems (@AltCryptoGems) June 23, 2023</blockquote></div></div><p>This infrastructure is intended to allow seamless settlement between participating banks under shared technical and legal standards, reducing fragmentation and enabling standardised corporate use across Japan’s financial system.</p><h2>Cross Border Expansion And Global Bank Competition</h2><p>The yen-based token is expected to eventually extend into dollar-denominated settlement, positioning it for international corporate payments.</p><p>The move comes as global banks accelerate their own tokenised deposit strategies.</p><p>Institutions such as JPMorgan have already begun deploying bank-issued digital tokens across blockchain networks, while US fintech firms are also pushing into consumer-facing stablecoin models.</p><p>The broader trend reflects a gradual shift away from third-party stablecoins toward instruments issued directly from regulated bank balance sheets.</p><h2>Governance Questions Remain For Joint Token Model</h2><p>Despite growing clarity on structure and objectives, key governance details remain unresolved.</p><p>It is still unclear whether the three banks will issue a single unified token under one brand or operate a shared infrastructure with separate bank-linked tokens.</p><p>Custody arrangements, reserve management, and final cross-border compatibility rules are also still under discussion, leaving the consortium’s final operating model dependent on how regulatory and technical decisions are finalised in the coming months.</p></div></div></div>

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<p>Japan's three largest banks—MUFG, SMBC, and Mizuho—are planning to jointly launch a yen-pegged stablecoin for corporate payments by fiscal 2026. Following an FSA-guided pilot since late 2025, the project targets business-to-business transactions using MUFG's Progmat blockchain platform. The initiative aims to serve over 300,000 corporate clients, with potential expansion to dollar-denominated settlements and cross-border use, though governance details remain under discussion.</p>

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Sumitomo Mitsui Financial

Mitsubishi UFJ Financial Group, Inc.

Mizuho Financial

Sumitomo Mitsui Financial Group, Inc.

Mizuho Financial Group, Inc.

Mitsubishi UFJ Financial

Mitsubishi Corporation

NTT DATA Corporation

JPMorgan Chase

MITSUBISHI CORP UNSPONS ADS REP 1 ORD SHS

JPMORGAN CHASE & CO. 4.20% DEP SHS REPSTG 1/400TH PFD SER MM

JPMORGAN CHASE & CO. 6%NON CUM DEP SHS REP 1/400TH PFD SER EE

JPMORGAN CHASE & CO. DEP REP 1/400TH (5.75% NON CUM PFD DD)

JPMORGAN CHASE & CO. 4.625% DEP SH RE 1/400TH INT NO CU PF LL

JPMorgan Chase & Co.

JPMORGAN CHASE & CO. 4.55% DEP SHS REPSTG 1/400TH PFD SER JJ

JPMORGAN CHASE & CO. 4.75 DEP SHS REP 1/400 NCUM PFD SR GG

Japan’s Three Largest Banks Join Forces To Launch Yen Stablecoin For Corporate Payments By 2026