Major Japanese Banks Plan Joint Stablecoin Rollout By Year-End – Report
Amid the worldwide push for stablecoin adoption, latest experiences declare that three main Japanese banks are getting ready to challenge a yen-pegged token for international settlements earlier than the tip of the yr.
Japanese Megabanks To Rollout Stablecoin This Year
On Friday, information media outlet Nikkei Asia reported that Mitsubishi UFJ Financial Group (MUFG) Bank, Sumitomo Mitsui Banking Corp., and Mizuho Bank are getting ready to collectively launch a stablecoin “to advertise settlements made with pegged cryptocurrencies.”
According to the report, the three main banks, which serve over 300,000 purchasers mixed, plan to determine a framework for the stablecoin using the system of Tokyo-based fintech firm Progmat.
Notably, MUFG launched the platform in 2023 to facilitate the issuance of bank-backed stablecoins after the enactment of a 2022 invoice that prohibited non-banking establishments from issuing stablecoins.
The megabanks are set to standardize their token for funds inside the firms and between them. Japanese buying and selling home Mitsubishi Corp., which has over 240 main working firms beneath its umbrella, would be the first establishment to make use of the soon-to-be-launched token for inside monetary settlements.
Nikkei famous that the corporate expects to cut back remittance charges and administrative burdens, each internally and externally, if the token turns into broadly used.
The banks will initially focus on a yen-pegged stablecoin, however plan to challenge a USD-pegged model sooner or later. Additionally, they anticipate a rollout earlier than the tip of the yr following a proof-of-concept trial.
Regulatory Efforts Push Adoption In Asia
The megabanks’ rollout plan comes because the sector good points vital momentum in Japan and Asia. In August, Japan’s Financial Services Agency (FSA) was getting ready to approve the primary yen-backed stablecoin this fall. Under Japan’s framework, solely licensed cash switch firms, belief firms, and banks are allowed to challenge the tokens.
The token could be issued by Tokyo fintech firm JPYC, which was within the strategy of registering as a cash switch firm on the time. Additionally, it might be backed by Japanese yen reserves, together with financial institution deposits and authorities debt.
Noritaka Okabe, CEO of JPYC, asserted that yen-pegged stablecoins might enhance Japan’s bond market, as issuers would enhance demand for presidency bonds. He highlighted that Tether and Circle have develop into main patrons of US Treasuries, additionally noted by the US Treasury Secretary, Scott Bessent, in August.
Meanwhile, Hong Kong has been working to determine itself as one of many main crypto hubs worldwide, advancing essential laws to control the sector. Hong Kong’s Legislative Council handed the Stablecoin Ordinance in May, which was enacted on August 1, and is anticipated to challenge the primary batch of licenses in the beginning of subsequent yr.
Similarly, South Korea has seen a number of payments associated to the issuance and distribution of KRW-pegged stablecoins launched within the National Assembly. The extremely anticipated regulatory framework is anticipated to be launched this quarter. In September, digital belongings custodian BDACS and monetary big Woori Bank launched the primary KRW-pegged stablecoin, KRW1.
It’s price noting that Japan emerged because the fastest-growing crypto market within the Asia-Pacific (APAC) area in 2025, in accordance with Chainalysis. The report attributed the expansion within the Japanese ecosystem to the favorable coverage developments lately.
As a outcome, Japan surpassed different main nations, together with India, South Korea, and Vietnam, by way of on-chain worth obtained, which grew by 120% within the 12 months resulting in June 2025.
