Japan Financial Services Agency approves joint stablecoin issuance project

The Japan Financial Services Agency (FSA) said it will officially support an experiment to jointly issue a stablecoin involving three major megabanks: Mizuho Bank, MUFG, and SMBC. This is viewed as the first step for Japan to actively pursue blockchain-based payment innovation.

On the 6th (local time), The Block reported that the Japan FSA said in a statement, "Mizuho Bank, Mitsubishi UFJ Bank (MUFG), and Sumitomo Mitsui Banking Corporation (SMBC) will cooperate to test a plan to jointly issue a stablecoin." Mitsubishi Corporation, Progmat, and Mitsubishi UFJ Trust and Banking Corporation are also participating in the project.

The FSA explained that the purpose of the experiment is to verify whether multiple banking groups can legally and appropriately issue and operate a stablecoin classified under Japanese law as an 'electronic payment instrument.' It added, "We will confirm whether the system can actually operate lawfully while complying with relevant regulations."

This demonstration project is scheduled to run long-term from November 2025, and the experimental results and legal and regulatory analyses will be disclosed later on the FSA's official website.

This initiative is the first case of the FSA's newly launched 'Payment Innovation Project (PIP)'. PIP is a program newly established within the 'FinTech Proof-of-Concept Hub', which has supported fintech experiments since 2017, and was created to promote the demonstration and commercialization of blockchain-based payment systems.