Japan’s three financial powerhouses — Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group (SMBC), and Mizuho Financial Group — are joining forces to launch the first-ever stablecoin pegged to the Japanese yen. This landmark collaboration is expected to reshape the landscape of digital payments in Japan by simplifying cross-border transactions and delivering enhanced efficiency for businesses.
At the heart of this initiative is MUFG’s blockchain-based platform, Progmat, which will serve as the technological and regulatory foundation for issuing and managing the stablecoins. Designed to comply with Japan’s evolving legal framework for digital assets, Progmat ensures full transparency, governance, and compliance in the issuance of the new stablecoin.
The stablecoin is expected to be pegged not only to the Japanese yen but also to the U.S. dollar, offering flexibility and broader appeal for international trade and settlements. Mitsubishi Corporation is slated to be among the first entities to use this dual-pegged stablecoin for business settlements, signaling a concrete step toward real-world application.
This collaboration brings together more than 300,000 corporate clients connected through the three megabanks, creating a vast potential user base for the new digital currency. By integrating stablecoins into everyday financial operations, the initiative aims to reduce settlement times, cut transaction costs, and enhance transparency — especially in cross-border payments, which can often be slow and expensive under traditional systems.
The timing of this move aligns with Japan’s broader ambitions to digitize its economy and solidify its leadership in the fast-evolving world of blockchain finance. Japan’s Financial Services Agency (FSA) has been gradually easing restrictions on stablecoins, creating a more favorable regulatory environment for innovation. Although approval for the first yen-denominated stablecoin by fintech firm JPYC is still pending, the entrance of the nation’s largest banks into the sector represents a significant endorsement of stablecoins as legitimate financial instruments.
By establishing a shared platform for stablecoin issuance and payments, the three banks are laying the groundwork for a standardized approach across the Japanese financial system. This could eventually lead to industry-wide adoption, enabling interoperability between banks and fintech companies and fostering a more cohesive digital economy.
The move also positions Japan to keep pace with regional competitors like South Korea, China, and Hong Kong, all of which are actively investing in digital currency infrastructure. In particular, China’s digital yuan and Hong Kong’s e-HKD demonstrate how central bank digital currencies (CBDCs) and regulated stablecoins are becoming tools of economic strategy. Japan’s stablecoin project could serve a similar function, bolstering the yen’s role in international commerce and digital trade.
Stablecoins — digital tokens backed by traditional fiat currencies — have drawn increased attention globally for their potential to bridge traditional finance with decentralized technologies. However, regulatory uncertainty and concerns over transparency have hampered widespread adoption. With Progmat’s compliance-first approach, Japan’s megabanks are aiming to overcome these obstacles and offer a secure, regulated alternative that can be trusted by institutions and consumers alike.
In addition to streamlining payments, the new stablecoin infrastructure could open the door to a wide range of digital financial products. From programmable money for automated business contracts to tokenized securities and real-time supply chain financing, stablecoins can act as a gateway to a more efficient and inclusive financial system.
This development could also be transformative for Japan’s remittance market. With millions of foreign workers and international students residing in the country, faster and cheaper remittance services powered by stablecoins could offer significant financial relief and convenience.
Moreover, the implementation of a yen-pegged stablecoin could support Japan’s trade and export sectors by minimizing currency exchange volatility, especially in deals with partners using the U.S. dollar. Businesses could benefit from greater predictability in contract settlements and reduced exposure to forex fluctuations.
As the global financial system continues its shift toward digital assets, Japan’s stablecoin initiative may serve as a model for other nations seeking to modernize their financial infrastructure while maintaining regulatory oversight. If successful, it could pave the way for future innovations such as central bank-issued digital currencies or cross-border stablecoin networks that connect major financial hubs.
In summary, the collaboration between MUFG, SMBC, and Mizuho represents a strategic leap toward the future of finance in Japan. With a robust regulatory framework, a powerful technological backbone in Progmat, and the combined influence of the country’s top financial institutions, Japan is positioning itself not just to catch up with the digital currency trend — but to lead it.