Japan’s Three Megabanks Complete Yen Stablecoin Pilot

As banks explore blockchain-based cross-border payments, Mizuho Bank, MUFG Bank and Sumitomo Mitsui Banking Corporation (SMBC) have completed a pilot of a jointly issued yen stablecoin. The banks and partners reported the results on October 16, saying the July test examined payments between Mitsubishi Corporation’s Japanese and overseas locations and confirmed the feasibility of a multi-bank issuance model, according to their joint announcement.

The test gives the three banks operational evidence for a shared issuance model, while leaving further assessment between the pilot and real-world use.

How was the stablecoin issued and tested?

The pilot ran from July 17 to 23, 2026, under a trust structure governed by Japan’s Payment Services Act. Mizuho, MUFG and SMBC acted as joint principal trustees, while Mitsubishi UFJ Trust and Banking Corporation served as agent trustee. The Financial Services Agency of Japan’s FinTech PoC Hub had approved the initiative for support in November 2025.

The banks’ announcement says the proof of concept verified issuance, transfer and redemption in a use case built around cross-border payments between Mitsubishi Corporation’s Japanese and overseas locations. The participants also examined operational approaches where multiple banks act as entrustors, compliance measures for cross-border payment use and anti-money-laundering and counter-terrorist-financing controls. The test was a proof of concept; the announcement does not report a live payment launch.

What roles did the banks and technology partners take?

SMBC supplied the blockchain platform, which TISI Inc. built. TISI also integrated wallet infrastructure with the stablecoin issuance system and related business processes. Mitsubishi UFJ Trust and Banking tested agent-trustee operations, including functions for issuance and redemption, trust asset administration and user protection.

The banks said the pilot provided practical insights into issuance and circulation and confirmed the system’s safety and reliability, as well as the feasibility of joint issuance by multiple banks. CoinMarketCap’s report on the pilot also notes that the scenario covered payments between Mitsubishi Corporation locations.

What happens before the stablecoin enters practical use?

The five participants said they will continue detailed assessments, identify issues for practical implementation and work with authorities, financial institutions, businesses and technology providers. The banks’ current design assumes that trust assets would be held in bank deposits and that circulation would be limited to users who have completed identity verification at banks. It also assumes no circulation cap; the announcement says these design assumptions may change.

In June, the banks said they aimed to begin live transactions with a jointly issued stablecoin in fiscal 2026. The October announcement points back to that plan while describing further assessment and design work. The completed pilot therefore establishes tested processes for a proposed shared yen token, with practical deployment still ahead.

Sources

• joint announcement — smbc.co.jp
• report on the pilot — coinmarketcap.com