Japan's three banking giants plan to begin live commercial transactions using a jointly issued stablecoin within the fiscal year ending March 2027.
In a joint statement released Wednesday, MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation (SMBC) said they plan to issue the stablecoin under a trust agreement, with the three banks serving as joint settlors. A trust bank or similar institution will act as trustee, according to the statement.
Specifically, the banks aim to launch live stablecoin transactions during fiscal year 2026, which runs through March 2027, "with an eye toward the potential use of stablecoins across a wide range of use cases," the statement said.
The three banks have also agreed to establish a council to examine operational frameworks and governance in preparation for the stablecoin issuance.
The announcement builds on several months of groundwork. The three banks first joined forces in October to pilot the stablecoin project, examining how multiple banking groups can jointly issue stablecoins classified as electronic payment instruments under Japanese law.
