Three leading banking institutions in Japan, MUFG, Sumitomo Mitsui, and Mizuho, are reportedly planning a stablecoin launch.
The stablecoin targeting cross-border payments will be linked to fiat currencies, including the US Dollar and the Yen.
Mitsubishi Corporation will be the first institution to pilot the stablecoin.
Three mega financial institutions in Japan, Mitsubishi UFJ (MUFG), Sumitomo Mitsui, and Mizuho, are reportedly planning to issue a stablecoin backed by fiat currencies, including the US Dollar (USD) and the Japanese Yen (JPY).
Mitsubishi Corporation to pilot the stablecoin
The stablecoin will be used to facilitate cross-border payments, according to a report by Nikkei. Mitsubishi Corporation will be the first company to adopt the stablecoin for cross-border payments. However, MUFG, Sumitomo Mitsui, and Mizuho would gradually roll out the platform to more than 300,000 business partners under their umbrella.
Stablecoins are digital currencies built on blockchain technology and backed by fiat and other assets, like Gold, to maintain a stable price. They are designed to work as alternatives to their volatile counterparties, making them suitable for everyday transactions.
The introduction of stablecoins will mark a major step in Japan’s financial ecosystem and boost corporate payments. Regulators in the country are in the process of approving local Yen-backed stablecoins, which will give enterprises access to a new era of payments and cross-border transfers.
Tokenized deposits are also on the radar of Japan’s financial institutions, as seen in Post Bank’s recent announcement about the intended rollout of DCJPY. This tokenized Yen is expected in 2026, signaling growing interest in the asset class.
Ripple’s strategic partner, SBI, is also targeting 2026 for the debut of the RLUSD stablecoin in Japan. RLUSD is an institutional-grade stablecoin issued by Ripple on the XRP Ledger (XRPL).
Stablecoins have become an integral part of the cryptocurrency industry, led by Tether’s USDT and Circle’s USDC. Combined, stablecoins have a total market share of $312 billion, underscoring their role as a transaction medium and a store of value.
