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Japan’s top banks embrace stablecoins
Japan’s biggest banks are joining forces to create a yen-pegged stablecoin that could reshape how businesses move money. Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corp (SMBC), and Mizuho Bank plan to use MUFG’s blockchain platform, Progmat, to modernize payments and settlements.
A new chapter for corporate payments
The stablecoin will first be tested by Mitsubishi Corp, which operates over 240 subsidiaries worldwide. The company hopes to cut fees and delays on dividend transfers and acquisitions. The banks say this system could soon become Japan’s first unified stablecoin network, improving efficiency for more than 300,000 corporate clients.
Built on the Progmat blockchain
MUFG’s Progmat platform allows banks to issue regulated stablecoins across multiple public blockchains like Ethereum, Polygon, Avalanche, and Cosmos. The project aims to make stablecoins interoperable between networks and companies, simplifying corporate transactions.
Rising competition in Japan’s stablecoin race
Other players are also moving fast. The Financial Services Agency (FSA) is preparing to approve yen-based stablecoins. Firms like JPYC and Monex Group are exploring their own versions, signaling Japan’s rapid shift toward blockchain-based finance.
