Japan's three largest banks plan to jointly issue stablecoins by March 2027, bringing the country's biggest lenders deeper into blockchain-based payments.
The banking arms of Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group said Wednesday they will set up a council to examine operating frameworks and prepare for issuance, Reuters reported on Wednesday morning, June 10.
- Japan's Financial Services Agency, the country's financial regulator, has been supporting the experimental stage of the project as part of Japan's push to use blockchain in payment systems.
The plan puts Japan's banks into a market that has gained global attention as U.S. President Donald Trump backs stablecoins (instead of central bank digital currencies) and lawmakers in several countries debate how to regulate them.
More context: Everyone wants stablecoins regulated, except nobody agrees why
- Japan has already seen a smaller version of the same shift. JPYC, a Japanese startup that issues yen-pegged stablecoins, began issuing its token in October last year.
The bank-led model could give yen stablecoins a more traditional financial wrapper, instead of leaving the market mainly to crypto issuers like Tether or Circle.
Moreover, the political backdrop is also moving in the same direction since a ruling party panel this month called for wider use of yen-based stablecoins for settlement in Asia.
- Still, the banks haven't disclosed the final stablecoin structure, the blockchain networks they plan to use or whether the first products will target consumers, companies or cross-border settlement.