The three banks collectively serve more than 300,000 corporate clients across Japan. By creating a standardized digital token, they aim to cut transaction costs and speed up payments between companies. Mitsubishi Corporation will be the first company to use the stablecoin for settling payments across its 240+ global subsidiaries.
### Building on Progmat’s Infrastructure
The stablecoin will run on MUFG’s Progmat platform, a blockchain system designed specifically for regulated financial institutions. MUFG announced Progmat Coin in June 2023, creating infrastructure that lets banks issue digital tokens on multiple public blockchains including Ethereum, Polygon, Avalanche, and Cosmos.
Unlike typical cryptocurrency platforms, Progmat emphasizes bank custody, regulatory compliance, and standardization. This means different banks can issue tokens that work together seamlessly for corporate payments. The platform meets strict requirements from Japan’s Financial Services Agency, which oversees all stablecoin issuance in the country.
The technical setup allows tokens issued by different banks to be standardized and used for payments within companies and between separate businesses. MUFG plans to expand support to additional blockchain networks beyond the current four.
### Project Pax: Connecting Traditional Banking with Blockchain
In September 2024, the same three banks backed **Project Pax**, a related initiative focused on cross-border payments. This project uses SWIFT’s existing messaging system to let banks instruct the Progmat platform to settle transactions on blockchain networks.
Project Pax addresses major pain points in international business payments. The $182 trillion global cross-border payments market faces persistent challenges with speed, cost, and accessibility. By integrating SWIFT’s API framework with blockchain technology, the banks can offer 24/7 settlement while maintaining anti-money laundering compliance and regulatory standards.
The project started with a prototype phase and aims to bring in financial institutions from other countries. Companies using the system won’t need to handle stablecoins directly — SWIFT messages will trigger blockchain settlements in the background, making the technology invisible to end users while delivering faster, cheaper transfers.
### Japan’s Regulatory Framework Sets Global Example
Japan established clear stablecoin regulations in June 2022, which took effect in June 2023. These rules specify that only licensed banks, registered money transfer companies, and trust companies can issue stablecoins. The regulations require strong asset backing and guaranteed redemption at face value.
This regulatory clarity puts Japan ahead of most major economies. While the United States continues debating comprehensive stablecoin legislation and China maintains strict crypto restrictions, Japan created a workable framework that encourages innovation within safe boundaries.
The approach is already showing results. Japan’s crypto adoption grew 120% year-over-year through June 2025, according to Chainalysis research, making it the fastest-growing market among top Asia-Pacific economies. In fall 2025, Japan’s Financial Services Agency (FSA) approved the country’s first regulated yen stablecoin from fintech company JPYC.
The banks plan to issue 1 trillion yen worth of stablecoins over the next three years — roughly $6.64 billion at current exchange rates.
### Real-World Benefits for Businesses
For Mitsubishi Corporation and other large companies, the stablecoin offers practical advantages. International payments for dividends, acquisitions, and customer transactions currently involve multiple intermediaries, currency conversions, and processing delays. Each step adds fees and complexity.
With blockchain-based stablecoins, these payments can settle in minutes rather than days. Companies avoid duplicate currency conversion fees when dealing with multiple countries. The 24/7 operation means payments aren’t held up by banking hours or time zones.
The standardization across three major banks creates network effects. As more of the 300,000+ business clients adopt the system, the value increases for everyone using it. Companies can make payments to any business partner whose bank participates, creating a unified digital payment network across Japan’s corporate sector.
Beyond Japan, the infrastructure could eventually connect with stablecoin systems in other countries, enabling truly seamless international business payments.
### Broader Implications for Digital Finance
Japan’s initiative fits into a global shift toward bank-issued stablecoins. Nine major European banks announced plans for a euro stablecoin launching by late 2026. South Korea is preparing its own stablecoin legislation, while Hong Kong is creating a licensing regime for digital currency issuers.
The total stablecoin market recently crossed $300 billion in circulation, though 99% remains pegged to the US dollar. Japan’s yen stablecoin — and similar efforts in other countries — could diversify this concentration and give businesses more options that match their actual currency needs.
Other Japanese institutions are pursuing related projects. Japan Post Bank plans to launch DCJPY, a tokenized yen deposit, by fiscal 2026. Ripple and SBI are targeting early 2026 for introducing the RLUSD stablecoin to the Japanese market. Binance Japan partnered with Mitsubishi UFJ Trust and Banking Corporation in September 2023 to explore additional stablecoin issuance using the Progmat platform.
These parallel efforts signal broad institutional commitment to blockchain-based payment systems in Japan.
### The Road Ahead
The consortium’s end-of-year timeline means implementation is happening rapidly. Mitsubishi Corporation’s initial deployment will provide crucial real-world testing before expanding to the banks’ full client base.
The banks will start with yen-pegged stablecoins before introducing dollar-pegged versions. This phased approach lets them refine operations and compliance procedures on familiar ground before expanding to multiple currencies.
Whether other countries adopt similar frameworks remains uncertain, but Japan is demonstrating that banks and blockchain can work together under appropriate regulation. For businesses frustrated by slow, expensive international payments, that represents a meaningful step forward.
https://bitcoinethereumnews.com/blockchain/japans-three-largest-banks-launch-joint-yen-stablecoin-on-blockchain-platform/?utm_source=rss&utm_medium=rss&utm_campaign=japans-three-largest-banks-launch-joint-yen-stablecoin-on-blockchain-platform
