Japan’s Biggest Banks Unite to Launch Yen- and Dollar-Pegged Stablecoin for Global Settlements

Quick Breakdown 

• Japan’s biggest banks — MUFG, SMBC, and Mizuho — are teaming up to launch a yen- and dollar-pegged stablecoin.
• The project, built on MUFG’s Progmat platform, aims to simplify settlements and reduce costs for businesses.
• It marks a major step in Japan’s strategy to modernize payments and expand its global digital currency footprint.

Japan’s top financial institutions — Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group (SMBC), and Mizuho Financial Group — are joining forces to launch a stablecoin pegged to both the Japanese yen and the U.S. dollar, marking a major step in Japan’s digital finance evolution.

According to a report published on October 17, the stablecoin will initially be used for settlement by Mitsubishi Corporation, with plans to expand its use among the banks’ collective network of over 300,000 business partners. The collaboration underscores Japan’s drive to integrate blockchain into mainstream financial operations and accelerate the country’s position in the global digital currency landscape.

JUST IN: 🇯🇵 Japan’s top three banks MUFG, Sumitomo Mitsui, and Mizuho are collaborating to launch a stablecoin pegged to both the yen and the US dollar, signaling a major step toward mainstream digital currency adoption.

— DeFi Planet (@PlanetDefi) October 17, 2025

A unified platform for stablecoin payments

The project aims to build a single platform that facilitates stablecoin-based payments and settlements across industries. By leveraging blockchain technology, the system is expected to streamline business transactions, reduce operational costs, and enable faster cross-border settlements.

This multi-bank initiative also aligns with Japan’s broader ambition to establish a secure and regulated environment for digital asset use in corporate and interbank payments — a key step as the nation competes with other economies embracing stablecoin innovation.

Progmat to power stablecoin issuance

Central to the project is Progmat, a blockchain infrastructure developed by MUFG that specializes in creating regulated digital financial instruments. Progmat will oversee the issuance, management, and compliance of the stablecoin, ensuring adherence to Japan’s strict financial regulations.

The introduction of the dual-pegged stablecoin highlights Japan’s strategy to modernize financial infrastructure while maintaining stability and trust within the system. As global institutions increasingly explore stablecoin adoption for faster settlements, Japan’s coordinated approach between its largest banks could set a benchmark for regulatory-backed digital currency innovation.

In parallel, Japan’s securities regulator is preparing new rules to criminalize insider trading in cryptocurrency markets, aiming to align digital asset regulation with traditional securities laws. The move signals Japan’s intent to enforce market integrity as it embraces blockchain-driven financial products.