Japan's Three Megabanks Unite to Issue Sovereign Stablecoin, Targeting 1 Trillion Yen in Transaction Volume by 2028

Japan's three financial giants—Mitsubishi UFJ Bank (MUFG), Sumitomo Mitsui Banking Corporation (SMBC), and Mizuho Bank—have agreed to jointly issue a yen-pegged stablecoin within fiscal year 2026, with a March 2027 deadline. The alliance is backed by Japan's Financial Services Agency under its Payment Innovation Project framework, aiming to modernize corporate settlement and replace legacy systems like SWIFT. The stablecoin will be issued as "specific trust beneficiary rights" under Japan's Payment Services Act, ensuring 1:1 backing by physical fiat currency held in trust accounts.

Under Project Pax, the three banks are targeting approximately one trillion yen (around $6.5 billion) in aggregate transaction volume by 2028. Mitsubishi Corporation has become the network's first anchor user, planning to integrate the stablecoin across its 240+ global subsidiaries for cross-border payments and inter-company settlements.