Three of Japan’s largest banks—Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corporation (SMBC), and Mizuho Bank—plan to jointly issue a yen-pegged stablecoin aimed at modernizing payments and streamlining corporate settlements, according to a report from Nikkei.
The stablecoin will be issued through MUFG’s “Progmat” platform, a blockchain-based system launched in June to support the creation of bank-backed digital currencies across public networks like Ethereum, Polygon, Avalanche, and Cosmos.
The initiative aims to reduce transaction costs and standardize digital payments across the banks’ combined network of over 300,000 corporate clients. The stablecoin is expected to be interoperable between companies, allowing for faster and more efficient settlements both domestically and internationally.
Mitsubishi Corporation is set to be the first to pilot the stablecoin for internal transactions, including cross-border payments related to dividends, acquisitions, and customer operations. The rollout is expected by the end of the year.
If successful, the project would mark the first large-scale, bank-backed stablecoin network in Japan under a unified framework, further solidifying the country’s growing integration of blockchain into traditional finance.
The move comes amid increasing momentum in Japan’s stablecoin sector. In recent months, other financial firms—including JPYC and Monex Group—have also announced plans to issue yen-based stablecoins, while regulators work to establish clear guidelines for their use.
Featured image from: cointelegraph.com