Japan’s three largest banking groups have completed a joint trial of a yen-denominated stablecoin, moving blockchain-based cross-border corporate payments closer to potential commercial use. The test was announced on October 16, 2026 and ran from July 17 to July 23, 2026.
The participants included Mizuho Bank, MUFG Bank and Sumitomo Mitsui Banking Corporation, with support from Mitsubishi UFJ Trust and Banking Corporation and TISI. Mitsubishi Corporation served as the corporate test client, providing transactions between its Japanese headquarters and overseas offices.
Under the pilot, the banks acted as joint settlors while Mitsubishi UFJ Trust served as trustee. The yen stablecoin was issued as a specified trust beneficiary right under Japan’s Payment Services Act. The trial covered the full process of issuance, transfer and redemption, alongside regulatory compliance, transaction security, anti-money laundering controls and measures against terrorist financing.
The project was selected in November 2025 for support through Japan’s Financial Services Agency FinTech Proof-of-Concept Hub payment modernization program. According to the announcement, the experiment confirmed the technical feasibility of a multi-bank issuance model and the safety, reliability and operational effectiveness of the system.
Although the framework is not yet a commercial service, the banks aim to work toward actual transactions during fiscal 2026, which ends in March 2027. The design includes deposit-backed circulation among users who have completed bank identity checks, and participants may explore bringing deposits and other financial assets onchain.
