Japan's Major Banks Complete Yen Stablecoin Pilot for Cross-Border Payments

Japan's three major banking groups—Mizuho, MUFG, and SMBC—announced on October 16 that they have completed a joint pilot for a yen stablecoin designed for cross-border payments. The pilot, conducted from July 17 to 23, 2026, aimed to validate the issuance and redemption processes of the stablecoin, paving the way for future real transactions targeted for fiscal 2026.

Details of the Pilot

The pilot involved collaboration with Mitsubishi UFJ Trust and Banking Corporation and technology provider TISI Inc. The participating banks issued a shared yen token, which was tested through a full cycle of issuance, transfer, and redemption. This initiative is part of a broader effort by Japanese banks to develop a blockchain-based payment infrastructure.

• The stablecoin was issued under Japan’s Payment Services Act.
• Circulation was limited to KYC-verified users at the participating banks.
• The pilot confirmed the safety, reliability, and operational viability of the joint issuance model.

The primary use case for the pilot was to facilitate cross-border settlements between Mitsubishi Corporation's Japanese headquarters and its overseas offices. The results of the pilot provided valuable insights into regulatory compliance, including anti-money laundering and counter-terrorism financing measures.

Next Steps

With the pilot successfully completed, the banks are now focused on addressing outstanding issues before moving towards commercial deployment. This includes governance, regulatory compliance, cybersecurity, and system stability. The Financial Services Agency-backed project was initiated in November 2025, and the banks are committed to further developing digital payment services and blockchain projects.