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Japan’s Financial Services Agency (FSA) backs a stablecoin pilot by Mizuho, MUFG, and SMBC.
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The project will test joint issuance of stablecoins under Japanese law.
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It’s part of Japan’s new Payment Innovation Project (PIP).
Three Megabanks Join Forces
Japan’s top financial regulator, the FSA, has endorsed a pilot stablecoin project uniting the country’s three largest banks — Mizuho Bank, MUFG, and SMBC — in a coordinated effort to issue yen-backed digital assets.
Testing Joint Stablecoin Issuance
The consortium aims to explore how multiple banking groups can jointly issue and manage stablecoins classified as “electronic payment instruments” under Japanese law. The FSA will oversee compliance and ensure the system aligns with national financial regulations.
Part of Japan’s Payment Innovation Drive
This pilot marks the first project under the FSA’s new Payment Innovation Project (PIP), launched to accelerate blockchain-based payment solutions. The initiative will operate under Japan’s FinTech Proof-of-Concept Hub, active since 2017.
Toward a Modernized Financial Infrastructure
Officials see this collaboration as a key step toward modernizing Japan’s payment systems and ensuring secure, fast digital transactions across institutional networks. Results from the pilot will be published on the FSA’s website once testing concludes.
