On June 10, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group announced that their banking business divisions will jointly issue a stablecoin for the fiscal year ending March 2027, and will also set up a committee to review the operating framework and prepare for the issuance. Reuters reported that this is part of Japan’s national strategy to use blockchain technology to enhance payment systems. Japan’s Financial Services Agency (FSA) has supported the project during its trial phase.
Confirmed Actions: Committee Setup and Timeline for the Fiscal Year Ending March 2027
According to the joint statement from the three groups on Wednesday, the confirmed specific actions are as follows: the banking business divisions of Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho will jointly establish a committee to review the operational framework for the joint stablecoin and complete preparations ahead of a formal launch. The target issuance deadline is within the fiscal year ending March 2027.
The statement does not disclose the following information: the stablecoin’s pegged asset type or specific specifications, target circulation volume, intended application scenarios, and the committee’s exact composition and review timeline.
FSA Involvement and Synchronized Policy Developments
Role of the FSA: Reuters confirmed that Japan’s Financial Services Agency (FSA) has been supporting the trial phase of the above plan, positioning it as part of Japan’s broader efforts to strengthen payment systems using blockchain technology. The statement did not explain the FSA’s regulatory approval timeline or specific conditions for a formal commercial launch.
Ruling Party Proposal: In June 2026, a working group from Japan’s ruling party called for promoting the use of yen-pegged stablecoins for settlement in Asia in its proposal. The proposal details and the subsequent legislative process have not been published yet.
JPYC Status: The Japanese startup JPYC began issuing yen-pegged stablecoins in October 2025 and is currently the yen-pegged stablecoin product already in circulation within Japan. The relationship between the three major banking groups’ plans and JPYC has not been explained in the announcement.
FAQ
Are the joint stablecoin plans of the three major bank groups pegged to the yen?
In the three groups’ Wednesday statement, they did not explicitly specify which asset the planned stablecoin would be pegged to or its specific specifications. Reuters only confirmed two facts: the “joint issuance of a stablecoin” and the establishment of a committee; other detailed specifications await publication after the committee’s review.
Does the FSA’s “support for trials” of this plan mean that formal issuance has already been approved?
According to Reuters, the FSA’s current role is to support the trial (pilot) phase, and it has not confirmed that it has approved formal commercial issuance or set a regulatory decision timeline. The banks’ move to set up a committee is still a preparatory stage, and the formal regulatory approval process has not been publicly disclosed.
What differences are already known between JPYC and the plans of the three major bank groups?
Based on existing coverage, JPYC is a yen-pegged stablecoin independently issued by the Japanese startup in October 2025; the plans of the three major banking groups are being jointly driven by three major banking groups and involve the FSA’s trial participation. The two differ clearly in terms of issuance entities and institutional backgrounds, but their specific business positioning and the extent of market overlap have not been explained by official sources.
