Japan's three largest banks eye joint stablecoin issue by March 2027
Japan’s three largest banks — MUFG, SMBC, and Mizuho — plan to jointly issue a yen-backed stablecoin within this fiscal year, ending in March. They will set up a council to define the operating model and prepare for issuance, with the banks acting as joint settlors and a trust bank or similar institution serving as trustee. Japan’s Financial Services Agency has already signaled support, and the ruling Liberal Democratic Party has said the state should encourage yen-based stablecoins. The move comes in a market dominated by U.S. dollar stablecoins such as USDT and USDC, which together hold most of the sector’s value. Yen-linked tokens remain tiny, with less than $50 million in circulation out of a $311 billion market. The largest existing yen stablecoin is JPYC, with a market cap of about $18 million.
