Japan’s three largest financial institutions—Mizuho, MUFG, and SMBC—announced on October 16 that they have completed a joint yen-denominated stablecoin pilot for cross-border settlement, setting the stage for real commercial transactions in fiscal 2026.
Key Takeaways
- The pilot ran from July 17 to 23, 2026, testing cross-border settlement between the headquarters and overseas offices of Mitsubishi Corporation.
- Tokens were issued under Japan's Payment Services Act as a single shared asset backed by bank deposits, with participation limited to KYC-verified users and no total issuance cap.
- Mitsubishi UFJ Trust and Banking served as the trustee, while technology firm TISI Inc. built the system on a blockchain platform provided by SMBC.
- Commercial deployment is scheduled for fiscal 2026, which runs from April 2026 to March 2027.
Operational Structure of the Shared Yen Token
The project was originally selected in November 2025 under the Financial Services Agency's FinTech PoC Hub and Payment Innovation Project. Following the formation of a joint council in June to study governance, the banks acted as joint settlors to issue a unified token.
The trial verified the complete transactional lifecycle, including issuance, transfer, and redemption for fiat currency. Operations complied with anti-money laundering and counter-terrorist financing standards, confirming the safety and technical viability of multi-bank joint issuance. The initiative comes as institutional interest in tokenized settlement expands worldwide and the stablecoin market cap hits $315 billion.
Why It Matters
This pilot demonstrates a shift toward multi-bank, deposit-backed digital currencies operating under established national banking frameworks. By leveraging joint trust structures under the Payment Services Act, Japanese megabanks are constructing an alternative to single-issuer private tokens, potentially streamlining corporate treasury operations and reducing international transfer friction.
If launched successfully between April 2026 and March 2027, the system could serve as an international blueprint for compliant bank-issued stablecoins. Key variables to watch include commercial transaction throughput, fee structures compared to legacy SWIFT channels, and potential integration with existing regulatory frameworks like the EBA's MiCA regulations.
