Japan's three major banks plan to jointly issue a stablecoin, initially pegged to the yen, with a possible U.S. dollar version in the future.

```

Japan’s three major banks will jointly issue stablecoins, marking the country’s shift from regulatory leadership to actual participation in the digital currency market.

According to a report by Nikkei on Friday, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group will jointly launch a digital currency pegged to the value of the yen.

The three banks will build infrastructure for corporate clients, allowing stablecoins to be transferred between clients according to unified standards. Nikkei reports that they will initially issue yen-pegged stablecoins, with possible plans to introduce dollar-pegged stablecoins in the future.

This move comes as the Japanese stablecoin market reaches a breakthrough moment. Japan was the first country in the world to establish a regulatory framework for stablecoins, but until now, the yen has lacked blockchain-based representation.

Currently, multiple Japanese institutions are actively moving into stablecoins. Fintech startup JPYC received regulatory approval this week and plans to issue the country’s first yen stablecoin this autumn. Tokyo-based Monex Group is also considering a similar move.

Three Major Banks Establish Unified Standard

According to Nikkei, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group will jointly construct a stablecoin transfer system, enabling corporate clients to conduct digital currency transactions under a unified standard. The initial phase will introduce yen-pegged stablecoins, with possible extensions to dollar-pegged stablecoins in the future. The goal is to provide corporate clients with more efficient payment and settlement tools.

Japanese fintech startup JPYC previously obtained regulatory approval, becoming the first company licensed to issue a yen stablecoin. Company CEO Noritaka Okabe stated at a press conference that the JPYC stablecoin will be fully convertible to yen and will be backed by domestic deposits and Japanese government bonds.

The company plans to officially launch in the autumn of this year, targeting an issuance scale of 1 trillion yen (US$6.81 billion) within three years. The stablecoin is expected to attract institutional investors such as hedge funds and family offices, with use cases including arbitrage trading, cross-border remittances, and corporate payments. JPYC will use a trust structure and issue the coin on Mitsubishi UFJ Trust Bank’s Progmat Coin platform.

Monex Group Observes Market

Tokyo-based financial services company Monex Group is considering issuing a yen-pegged stablecoin. Monex Group Chairman Oki Matsumoto told local media that this move could strengthen international remittance and corporate settlement denominated in yen.

“Issuing a stablecoin requires a lot of infrastructure and capital, but if we don’t deal with them, we’ll be left behind,” said Oki Matsumoto. While the company has not yet fully committed to issuance, Matsumoto said Monex “will respond appropriately” to this emerging market opportunity.

Takashi Tezuka, Japan country manager for Web3 infrastructure provider Startale Group, said that the difference between Japan and the US in terms of stablecoins reflects deeper distinctions. He noted that America’s latest GENIUS Act received a mix of relief and curiosity.

Tezuka said Japan was the first country to establish a regulatory framework for stablecoins, but until now, the yen has had no blockchain-based representation. After years of infrastructure development, Japan is preparing to shift from regulatory caution to active participation in digital finance.

Risk Warning and DisclaimerThe market carries risks, and investment should be carried out with caution. This article does not constitute individual investment advice, nor does it take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their particular situation. Investing based on this article is at your own risk. ```