Japan’s Mizuho Bank, MUFG Bank and Sumitomo Mitsui Banking Corporation (SMBC) have completed a joint yen stablecoin pilot designed to test cross-border payments for Mitsubishi Corporation, bringing the banks closer to using blockchain-based money for corporate transactions.
The banks announced the results on October 16, following a seven-day test conducted from July 17 to July 23, 2026. The pilot examined whether a stablecoin jointly issued by the three banks could support payments between Mitsubishi Corporation’s operations in Japan and its overseas locations.
The project also involved Mitsubishi UFJ Trust and Banking Corporation and technology provider TISI.
The stablecoin was issued under a trust arrangement in accordance with Japan’s Payment Services Act. Mizuho, MUFG and SMBC acted as joint principals, while Mitsubishi UFJ Trust and Banking Corporation served as trustee.
The token was designed to maintain its value through trust assets held as bank deposits. The proposed model also envisages circulation among users who have completed identity checks with participating banks.
During the trial, the institutions tested the stablecoin’s issuance, transfer and redemption processes. They also assessed the operational requirements for cross-border payments, regulatory compliance, user protection and measures to prevent money laundering and terrorist financing. The aim was to determine whether several banks could jointly issue and manage the same stablecoin while supporting corporate payment requirements.
Japan’s banks prepare for commercial use
The successful pilot provides practical evidence that the joint issuance model can work, but it does not mean the stablecoin is already available for general commercial use.
The participating institutions said they would continue examining the issues that need to be resolved before deployment, including customer protection, cybersecurity, regulatory compliance and system reliability.
In June 2026, the three banks announced plans to begin real transactions using a jointly issued yen stablecoin during the fiscal year ending in March 2027. They also planned to establish a council to coordinate the operating framework for the project.
If launched commercially, the stablecoin could give companies another way to settle payments between international offices, potentially reducing processing delays and administrative work associated with conventional cross-border transfers.
The next step is to move from testing the technology and operating model to resolving the practical requirements for real-world use.
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