MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation have signed a memorandum to establish a council for the joint issuance of a stablecoin. The banks aim to conduct their first commercial transactions by the end of the 2026 fiscal year, concluding in March 2027.
The council is tasked with developing the operational model, governance system, and issuance infrastructure. According to Reuters, Japan’s Financial Services Agency (FSA) supports the project’s experimental phase.
The initiative follows a pilot approved by the FSA in November 2025. At that time, the banks, along with Mitsubishi UFJ Trust and Banking and Progmat, began testing the joint issuance of a stablecoin under a trust scheme and its use for cross-border settlements by Mitsubishi Corporation.