Japan is accelerating its push into the digital currency space. Three of the country’s largest banks — Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corporation, and Mizuho Bank — are preparing to launch a yen-pegged stablecoin designed for fast, low-cost international payments.
This collaborative effort marks a major step in the country’s plan to modernize its financial infrastructure through regulated blockchain-based payment solutions.
Stablecoin Technology Backed by Major Japanese Banks
The new stablecoin will be issued using Progmat, a blockchain platform developed by MUFG in 2023. Progmat was created following Japan’s 2022 legal reform that allowed regulated banks and trust companies to issue bank-backed stablecoins.
The stablecoin will be pegged 1:1 to the Japanese yen and standardized across the three banks. This standardization is intended to simplify interbank transfers and internal settlements, reducing both administrative overhead and transaction costs.
As an early adopter, Mitsubishi Corporation will begin using the token for its internal financial operations. The technology is designed to enhance efficiency and transparency while maintaining full compliance with Japan’s financial regulations.
Japan Eyes Global Reach with USD-Pegged Stablecoin Next
While the initial rollout focuses on the yen, the consortium of banks is already planning to issue a USD-pegged stablecoin for broader international use. This move is expected to increase the competitiveness of Japanese banks in global financial markets and further digitize cross-border settlements.
In parallel, Japan’s Financial Services Agency (FSA) is preparing to approve the first official yen-backed stablecoin this fall, signaling growing regulatory support for blockchain-based finance.
This initiative places Japan among the global leaders in regulated stablecoin development and reinforces its commitment to fostering innovation in the crypto and digital asset sectors.
As global demand for secure, fast, and transparent cross-border payments grows, Japan’s bank-led stablecoin project could reshape the future of financial transactions across Asia and beyond.
