Japan’s Three Megabanks Seek Joint Stablecoin Issuance by March 2027

Japan’s three biggest financial groups are preparing a joint stablecoin issuance.

Reuters reported on June 9 that banks under Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc. plan to issue a stablecoin in fiscal 2026, which runs from April 2026 through March 2027.

The banks will form a joint consultative body to examine the operating framework and issuance structure for the project.

The initiative is being pursued with support from Japan’s Financial Services Agency. The Japanese government has been backing experiments and regulatory changes aimed at overhauling payment systems with blockchain technology.

Stablecoins have recently been moving further into mainstream finance, especially in the US. President Donald Trump has also strongly backed development of the stablecoin industry, helping widen interest across global finance.

Some policymakers, however, worry that stablecoins could become a channel for shifting funds outside the traditional banking system.

Japan has also seen continued moves toward stablecoin adoption. Japanese startup JPYC began issuing a yen-linked stablecoin in October last year, and a policy study group within the ruling Liberal Democratic Party recently proposed expanding the use of yen-based stablecoins as a payment method across Asia.