Three of Japan’s largest banks are collaborating to launch a unified stablecoin.
MUFG Bank, Sumitomo Mitsui Banking Corp, and Mizuho Bank collectively serve over 300,000 major corporate clients. Tokyo-based fintech Progmat will supply the infrastructure for the stablecoin, which will be pegged to the Japanese yen.
The launch is scheduled for March, following proof-of-concept testing, with a US dollar stablecoin anticipated to follow. Mitsubishi will be the first major user, integrating the stablecoin into its internal payment systems.
The banks expect that increased adoption of stablecoins will enhance efficiency compared to current cross-border payment systems, while also reducing costs and expanding options for collateral management. The stablecoin market is largely dominated by US dollar offerings.
Additionally, the first yen-denominated stablecoin is set to launch this year after Tokyo-based startup JPYC received regulatory approval to operate as a funds transfer service provider. “We want people in the world to use Japanese yen through our stablecoin,” stated JPYC CEO Noritaka Okabe, who aims to issue 1 trillion yen worth of the stablecoin over the next three years.
In Europe, nine banks are collaborating to develop a euro-denominated stablecoin.