Japan’s financial powerhouses are taking a decisive step into the digital era. Three of the country’s largest banks - MUFG, SMBC, and Mizuho - have come together to develop a stablecoin tied to both the yen and the U.S. dollar, a move that could transform how money moves across borders.
The project, which will rely on blockchain infrastructure built by Progmat, aims to cut through the high costs and delays that plague traditional international payments. Instead of relying on multiple intermediaries and currency conversions, businesses will soon be able to transact with a stablecoin that settles almost instantly, directly within Japan’s regulated banking system.
Insiders say the first phase will focus on corporate settlements, with Mitsubishi Corporation set to test the coin for international transactions. Once established, the network could expand rapidly across Japan’s corporate landscape, linking over 300,000 business partners that already work with the participating banks.
Unlike privately issued stablecoins that operate outside traditional finance, this one will be fully regulated and bank-backed, giving it credibility among global institutions. Progmat’s blockchain platform – developed by MUFG – will oversee issuance, compliance, and security, ensuring that every coin is transparently managed and legally recognized.
Japan’s regulators have been gradually opening the door to stablecoin innovation. The Financial Services Agency (FSA) recently signaled its readiness to approve the first yen-pegged stablecoin from fintech firm JPYC, laying the groundwork for broader adoption. The new banking alliance represents the next evolution of that effort – one that could eventually link Japan’s financial sector directly to blockchain-based global settlement systems.
Across Asia, digital currency initiatives are intensifying. China’s digital yuan is expanding, Hong Kong is piloting tokenized interbank payments, and South Korea is testing stablecoin interoperability. Japan’s latest move positions it squarely in this race for regional leadership, emphasizing a model built on compliance, collaboration, and trust.
If successful, the yen–dollar stablecoin could do more than modernize Japanese finance – it might establish the blueprint for how traditional banks and blockchain infrastructure can coexist, transforming the very mechanics of global money movement.
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