Japan’s three largest banks by market capitalization are joining forces to issue stablecoins tied to fiat currencies such as the yen and the US dollar, according to Nikkei.
Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corp (SMBC), and Mizuho Bank aim to modernize corporate settlements and reduce costs for cross-border payments. The consortium’s initiative suggests that liquidity in major international currencies should be available within the country’s financial system, not solely through foreign issuers.
The issuance of stablecoins will be based on the Progmat Coin infrastructure developed by MUFG.
The joint program will commence with a pilot project by Mitsubishi Corporation. With over 240 subsidiaries worldwide, the corporation will implement the stablecoin for internal settlements. The company aims to optimize international dividend transfers, purchases, and client transactions, saving on fees and administrative expenses.
Success in the pilot could pave the way for broader stablecoin adoption among the more than 300,000 corporate clients served by the consortium members.
In June 2022, Japan’s parliament passed a bill recognizing fiat-pegged tokens as digital money. The issuance of such assets is permitted only for licensed banks, service providers, and trust companies.
MUFG had planned to create a yen-based coin by 2023. The asset, named Progmacoin, was expected to be used for clearing and settlements on a digital securities platform being developed by the conglomerates SBI Holdings and Sumitomo Mitsui.
SMBC, managed by the latter, announced in April 2025 the launch of a stablecoin in partnership with Ava Labs and Fireblocks.
Earlier, SBI Holdings announced an expanded collaboration with Circle—a new joint venture will focus on promoting USDC in Japan.