Japan’s three largest banks plan to begin conducting live commercial transactions using a jointly issued stablecoin during fiscal year 2026.
MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation (SMBC) signed a memorandum of understanding (MoU) to establish a dedicated council responsible for developing the operating model, governance framework, and infrastructure for the future digital asset.
According to the participants, the stablecoin will be issued through a trust structure under which the three banks will act as joint settlors, while a trust bank or a similar institution will serve as trustee. The stablecoin is intended for practical use in commercial settlements and other financial applications.
The council will serve as a platform for coordinating the stablecoin’s technical architecture, issuance and circulation mechanisms, and corporate governance principles. The banks also plan to explore opportunities for other financial institutions and market participants to join the initiative.
MUFG, Mizuho, and Sumitomo Mitsui rank among Japan’s three largest banking groups. Based on their latest reporting periods, MUFG’s assets exceeded $2.7 trillion, Sumitomo Mitsui’s assets reached $2 trillion, and Mizuho’s assets stood at near $1.9 trillion.
Preparations for the launch come amid growing interest in the use of blockchain technology within payment infrastructure and tighter regulation of the digital asset sector in Japan. In 2024, the Japanese financial giants participated in testing a platform for cross-border stablecoin transfers. In 2025, SMBC began developing its own stablecoin. The same year, Japan launched its first yen-denominated stablecoin.
