Japan’s Largest Banks to Trial Yen Stablecoin by March 2026
- Japan’s top three banks—MUFG Bank, Sumitomo Mitsui Banking Corp., and Mizuho Bank—have received approval for a proof-of-concept trial of a yen-denominated stablecoin.
- The stablecoin is expected to be in practical use by March 2026, aimed at intracompany and intercompany payments.
- A smaller Japanese fintech firm has already launched a yen-based stablecoin backed by domestic bank deposits and Japanese government bonds.
- Rajiv Sawhney from Wave Digital Assets International suggests initial adoption might be slow due to existing cashless payment systems like PayPay.
This move marks significant progress in Japan’s financial sector as it explores the potential of stablecoins for corporate transactions. The trial will assess regulatory compliance when multiple banks jointly issue a stablecoin.
The initiative underscores Japan’s commitment to digital currency innovation, despite anticipated slow adoption due to established cashless systems. Source
