TL;DR
- Japan’s largest banks, MUFG, SMFG, and Mizuho, are collaborating to launch stablecoins pegged to yen and the U.S. dollar.
- Mitsubishi Corporation will pilot these stablecoins for corporate transaction settlements, connecting hundreds of thousands of business partners.
- The initiative aims to enable faster, 24/7 transfers while reducing fees, positioning Japan as a proactive player in regulated digital finance.
Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group have announced plans to issue stablecoins pegged first to the Japanese yen, followed by the U.S. dollar. The project is designed to integrate blockchain settlement with existing banking systems, offering companies seamless transaction capabilities across networks. Early pilot testing has begun, connecting stablecoin operations to current banking APIs and corporate infrastructure. The initiative also includes advanced monitoring tools and reporting frameworks to ensure transparency and efficiency throughout the payment process.
Mitsubishi Corporation will serve as the first adopter, using the yen- and dollar-pegged stablecoins for its trading and settlement operations. With over 300,000 corporate clients linked to these banks, the initiative could reshape corporate finance by facilitating more efficient cross-border and domestic transactions. Previous efforts, such as Project Pax, provided foundational experience in linking blockchain-based solutions with regulated financial environments. Analysts also highlight the potential for expanding these stablecoins into other sectors, including e-commerce and supply chain finance.
Regulated Innovation Enhances Transaction Speed And Security
The three banks anticipate that stablecoins will allow round-the-clock settlements, faster processing times, and significantly lower fees compared to conventional systems. Japan’s regulatory framework is guiding the development, ensuring compliance with anti-money laundering and consumer protection requirements while promoting adoption of digital assets. Additional testing is planned for integrating smart contracts that could automate repetitive corporate payments and reduce operational errors.
MUFG is also exploring the potential of permissionless stablecoins for international trade settlements, indicating Japan’s broader strategy to lead in fiat-backed digital currencies. Industry analysts are closely monitoring this rollout, recognizing it as part of a global trend where major economies examine G7 currency-backed tokens to modernize payment systems.
Mitsubishi Corporation’s stock showed a modest positive reaction after the announcement, closing at ¥3,569, up ¥8 or 0.22% on October 17. The trading range remained between ¥3,540 and ¥3,582, reflecting stable investor confidence. The company maintains a market capitalization of ¥14.38 trillion, a P/E ratio of 17.79, and a dividend yield of 2.8%. Its share price continues to hover near a 52-week high of ¥3,637, signaling steady consolidation and ongoing market trust.
