Japan's megabanks unite on a single yen stablecoin by March 2027

Three megabanks plan a joint yen stablecoin

Japan's three largest banks plan to issue a single yen-based stablecoin together. MUFG, SMBC and Mizuho aim to run live commercial transactions during the current fiscal year, which ends in March 2027. The three lenders set out the plan in a joint statement on 10 June 2026. A stablecoin is a digital token whose value is pegged to a traditional asset, usually a national currency such as the yen. The banks framed the move as part of a wider push to use blockchain technology for payments, alongside tokenised deposits. They have held joint discussions on the token since the supported trial began, and now want to move from testing to commercial use.

A trust structure makes the banks joint settlors

The token will be issued through a trust agreement. Under that structure, the three banks act as joint settlors, while a trust bank or a similar institution holds the underlying assets as trustee. The shared design lets the banks rely on one issuance framework instead of building three separate tokens. The banks have not yet named the trust company or the blockchain network. Under Japan's 2023 Payment Services Act, such a token counts as a regulated electronic payment instrument.

"The Three Banks will act as joint settlors and a trust bank or similar institution will act as trustee", 10 June 2026. — Joint statement, MUFG, Mizuho and SMBC

A council will design issuance and governance rules

The three banks signed a memorandum of understanding to set up a voluntary council. The council will examine the issuance infrastructure, system design, governance and operating processes. It will also review Japanese laws and market conditions before any live transactions begin. The banks said the council may later invite other financial institutions to take part. They named corporate settlement, cross-border payments and digital commerce as target use cases. The banks have not set the token's issue size, retail access terms or a precise rollout date beyond the fiscal-year window.

The pilot tested corporate and securities settlement

The plan grew out of a demonstration experiment selected in November 2025 under the Financial Services Agency's FinTech proof-of-concept hub. The Financial Services Agency, Japan's main financial regulator, has supported the joint trial since then. The pilot tested using the stablecoin to settle purchases of stocks, bonds and investment funds. According to coverage of the trial, it also examined cross-border payments involving a major Japanese trading house's overseas offices. The ruling Liberal Democratic Party has also urged the state to promote yen-based stablecoins, according to coverage of the announcement.

Yen tokens remain a small part of the market

Yen-based stablecoins make up a thin slice of the sector. According to CoinDesk, yen tokens account for less than $50 million of the market, with JPYC the largest at about $18 million. JPYC launched a yen-backed stablecoin in October 2025, and SBI Holdings has prepared a separate institutional yen token. Those tokens are far smaller than the combined balance sheets of the country's three largest lenders. A coin backed by MUFG, SMBC and Mizuho would be far larger than existing yen tokens.

Dollar tokens still dominate the stablecoin market

Dollar-pegged tokens still dominate the global stablecoin market. USDT from Tether and USDC from Circle together held about 84% of the sector, with market values near $186 billion and $75 billion (NewsFlash, 15 June 2026). Those two tokens anchor a stablecoin market worth roughly $311 billion. The Japanese banks' plan would add a bank-issued yen token to a market that dollar coins lead today.

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