Catenaa, Monday, November 10, 2025- Japan’s three largest banks have received regulatory approval to conduct proof-of-concept trials for a yen-denominated stablecoin, aiming for a March 2026 rollout, sources told Nikkei.
MUFG Bank, Sumitomo Mitsui Banking Corp., and Mizuho Bank plan to test whether multiple banks can issue a stablecoin legally and comply with financial regulations.
The pilot will focus on corporate and intercompany payments, with banks using the infrastructure of Tokyo-based fintech Progmat. Officials indicated the trial could eventually expand to a dollar-pegged stablecoin, though no timeline was set. Smaller firms have already launched yen-backed stablecoins, including JPYC, which is convertible and supported by domestic bank deposits and Japanese government bonds.
Analysts expect adoption to be gradual due to Japan’s already high cashless payment penetration, such as the widespread use of QR-based PayPay. Regional peers are also advancing in stablecoin development: Singapore launched XSGD under central bank oversight, and South Korea introduced a fully regulated won-backed stablecoin, KRW1.
China, in contrast, recently blocked private sector attempts to issue stablecoins, reinforcing Japan’s role as a cautious but progressive hub for digital currency experimentation.
