Key Highlights
- MUFG Bank, Mizuho Bank and Sumitomo Mitsui Banking Corporation completed a proof-of-concept test of a jointly issued yen-denominated stablecoin.
- The experiment ran from July 17 to July 23, 2026, with Mitsubishi UFJ Trust and Banking Corporation and technology provider TISI also participating.
- The test covered stablecoin issuance, transfers and redemption for payments between Mitsubishi Corporation’s Japanese and overseas offices.
Three major Japanese banks have tested a jointly issued yen-denominated stablecoin for cross-border payments between corporate offices in different countries.
In an announcement published on October 16, Mitsubishi UFJ Bank (MUFG Bank), Mizuho Bank and Sumitomo Mitsui Banking Corporation said they conducted the proof-of-concept experiment from July 17 to July 23, 2026. Mitsubishi UFJ Trust and Banking Corporation and technology provider TISI Inc. also participated.
The project was selected in November 2025 under Japan’s Financial Services Agency (FSA) Fintech Demonstration Experiment Hub and Payment Advancement Project.
Banks test cross-border stablecoin transfers
The experiment used a payment scenario involving Mitsubishi Corporation’s offices in Japan and overseas. Participants tested the processes required to issue, transfer and redeem stablecoins for cross-border payments.
The demonstration also examined regulatory requirements, operational procedures and system performance. Participants assessed anti-money laundering and counter-terrorist financing (AML/CFT) measures, including how compliance responsibilities would be divided among the institutions.
The banks said the test demonstrated the feasibility of their joint issuance model. The results do not mean the proposed payment service is commercially available.
Proposed stablecoin uses a trust structure
Under the proposed arrangement, MUFG Bank, Mizuho Bank and Sumitomo Mitsui Banking Corporation would act as joint trustees, while Mitsubishi UFJ Trust and Banking Corporation would serve as trustee under a trust agreement.
The stablecoins were structured as specified trust beneficiary rights under Japan’s Payment Services Act. The model would allow multiple banks to participate in issuance, with the trust bank handling trust-related responsibilities.
The proposed design would distribute the stablecoin through the banks’ existing customer bases. It also envisages holding the underlying trust assets in bank deposits and distributing tokens to users whose identities have been verified by their banks.
The structure remains under consideration and could change as the project develops.
TISI provides blockchain and wallet infrastructure
TISI provided the blockchain platform, issuance system and wallet infrastructure for the stablecoin tests. The banks have not confirmed the final technical arrangements for a commercial service.
The announcement referred to a June 10, 2026, statement outlining plans for the three banks to begin actual trading of a jointly issued stablecoin during fiscal year 2026. The October update did not confirm that trading had begun or provide a launch date.
Before deployment, the participants will continue assessing user protection, AML/CFT compliance, cybersecurity and system stability, while working with regulators and other relevant parties.
Japan’s yen stablecoin projects target different uses
The project follows other efforts to develop yen-denominated stablecoins for retail payments and institutional transactions.
On July 13, HashPort, KDDI and Lawson planned to test yen stablecoin payments at a Lawson convenience store in Tokyo in August 2026. That initiative focuses on retail payments rather than cross-border corporate transfers.
Earlier, on June 24, SBI and Startale had launched JPYSC, described in the report as Japan’s first trust-backed yen stablecoin. The token was made available through SBI VC Trade for institutional use.
The projects target different uses for yen stablecoins, including retail payments, institutional transactions and cross-border settlement.
Banks examine other onchain finance applications
The participating institutions also cited separate proof-of-concept projects involving the trading and transfer of traditional asset rights using blockchain and digital money, as well as trade settlement through the TradeWaltz platform.
The participating institutions also said they would continue examining how deposits and other financial assets could be integrated into onchain
Also Read: Coinbase, Marqeta Link Stablecoins With Global Card Payment Networks
