TOKYO - Three major Japanese banks said Wednesday they will jointly issue a stablecoin in the current business year through next March for use in trading stocks and investment trusts at selected brokerages.
MUFG Bank, Sumitomo Mitsui Banking Corp. and Mizuho Bank also agreed to create a council to work out governance and other rules for the stablecoin, likely to be denominated in yen.
They plan to expand the number of financial institutions where customers can use the digital money from the initial five, including Nomura Securities Co. and Daiwa Securities Co., which have been trialing the system since February.
Stablecoins are crypto assets pegged to tangible assets such as fiat currencies and are considered less volatile than other types of digital money such as Bitcoin.
The three banks began trials in November 2025 with an eye to issuing a joint stablecoin, in a project backed by the Financial Services Agency.
The banks have yet to choose the trust bank that will handle issuance or the company that will provide the system platform.
Cross-border transfers using stablecoins can be completed much faster than regular transfers, saving time and reducing costs, according to industry sources.
In Japan, Tokyo-based payment startup JPYC Inc. is among the leaders introducing stablecoins, with cumulative issuance topping 3 billion yen ($19 million) as of the end of May.
