Japan’s largest banks are preparing to launch a yen-pegged stablecoin by the end of the year, aiming to modernize corporate settlements and reduce transaction costs.
Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corp. (SMBC), and Mizuho Bank will issue the stablecoin on MUFG’s Progmat platform, setting a foundation for seamless and interoperable digital payments across Japan’s corporate ecosystem.
Together, the three institutions serve more than 300,000 corporate clients. By using a shared blockchain-based system, the banks hope to simplify settlements, eliminate delays, and enable faster, lower-cost transactions between companies.
Mitsubishi Corp. Takes the Lead as First User
Mitsubishi Corp. will be the first to adopt the stablecoin for internal financial flows. With over 240 subsidiaries worldwide, the company plans to streamline dividend payments, asset purchases, and cross-border transfers, reducing administrative burdens that currently slow corporate finance.
If successful, this could become Japan’s first unified bank-issued stablecoin network, operating across multiple public blockchains including Ethereum, Polygon, Avalanche, and Cosmos. MUFG has also signaled plans to expand to more networks.
Growing Momentum and Rising Competition
The initiative has already sparked wider interest. Binance Japan recently partnered with Mitsubishi UFJ Trust and Banking Corp. to explore stablecoin issuance on Progmat, while regulators at Japan’s Financial Services Agency are preparing to approve yen-based stablecoins.
Fintech firms like JPYC and financial groups such as Monex are also pursuing yen-pegged digital assets, signaling that the race has begun. Japanese banks and Web3 platforms now see stablecoins as a key step toward a more efficient financial system.
As Japan accelerates blockchain adoption, a unified stablecoin model could reshape corporate transactions and position the country as a global leader in digital finance.
