Japanese banks to launch yen and dollar stablecoins

• MUFG, SMBC, and Mizuho to Create Fiat-Backed Stablecoins
• Pilot project begins with Mitsubishi Corporation in 2025
• Initiative integrates Japanese banks into the global tokenized economy

Three of Japan's largest banks—Mitsubishi UFJ (MUFG), Sumitomo Mitsui (SMBC), and Mizuho—announced joint plans to issue yen- and dollar-backed stablecoins, aiming to modernize corporate payments and expand digital liquidity in the Japanese market. The initiative marks a decisive step in the integration of the traditional financial system with the digital asset infrastructure.

According to the Nikkei newspaper , the project aims to create a common standard for international businesses and transactions, allowing settlements in fiat currencies to occur directly within the Japanese banking ecosystem. The first pilot will be conducted with Mitsubishi Corporation, one of the country's largest conglomerates, serving as an initial case study for the adoption of the new stablecoins.

With over 300 companies connected to the three banks' network, the initiative has the potential to reshape the way large corporations make transfers and payments. Stablecoins, designed to maintain parity with traditional currencies, promise to combine instant settlement and blockchain traceability with the security and transparency of bank reserves.

The introduction of these digital currencies comes amid a more favorable regulatory environment. The Japanese government has accelerated the approval of national stablecoins pegged to the yen and encouraged the development of deposit tokens and on-chain settlement solutions. Among the ongoing projects, DCJPY, from Japan Post Bank, stands out, which is expected to launch by fiscal 2026 as a tokenized yen deposit.

This advancement places Japan in a prominent position in Asia, as the continent expands efforts to create clear rules for the stablecoin market. The movement also reflects the global context of institutionalization of digital assets, with the GENIUS Act in the United States establishing a federal framework for issuers.

Ripple and SBI Holdings, for example, already plan to launch RLUSD in Japan in early 2026, reinforcing institutional appetite for stablecoins and tokenized infrastructure. The collaboration between MUFG, SMBC, and Mizuho signals that the Japanese banking sector intends to compete directly with foreign issuers and position the country as a hub for innovation in stablecoin-based digital payments.