Japan’s three largest banks team up to issue yen-backed stablecoin for corporate settlements

Japan’s three largest banks—Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group—are collaborating to issue a yen-pegged stablecoin for corporate cross-border settlements, marking the country’s most significant institutional push into digital currencies.

The stablecoin, which will be managed through MUFG’s Progmat blockchain platform and initially used by Mitsubishi Corporation, will also include a dollar-pegged version and aims to serve the banks’ combined network of over 300,000 business partners.

The announcement comes as Japan’s Financial Services Agency eases stablecoin regulations, positioning the nation to compete with Hong Kong, South Korea, and China in Asia’s digital currency race.

MUFG’s Progmat to spearhead the Yen-pegged stablecoin initiative

At the center of this effort is Progmat, a blockchain infrastructure platform developed by MUFG. Progmat will oversee the Yen-pegged stablecoin project’s development ensuring that all digital assets adhere to Japan’s financial regulations and operational standards.

Through Progmat, issuance and governance of the Yen-pegged stablecoin will be fully compliant with regulatory frameworks reinforcing trust and transparency in the system. This regulatory alignment enhances global confidence, positioning the Yen pegged stablecoin as a reliable tool for international settlements.

The collaboration also aligns with Japan’s broader goal of modernizing its payment infrastructure and strengthening its presence in the expanding global digital currency ecosystem.

Earlier this year, reports revealed that Japan’s Financial Services Agency (FSA) was set to approve the nation’s first yen denominated stablecoin issued by fintech firm JPYC. Although still pending, the regulator’s recent easing of stablecoin rules suggests strong support for innovations like the Yen-pegged stablecoin underscoring Japan’s determination to join Hong Kong, South Korea and China in leading Asia’s crypto transformation.