Japan’s Three Largest Banks Launch Joint Yen Stablecoin on Blockchain Platform

Japan's three largest banks have launched a joint yen stablecoin, built on MUFG's Progmat blockchain infrastructure, aiming to reduce transaction costs and speed up payments for their over 300,000 corporate clients. Mitsubishi Corporation will be the first major user, settling payments across its global subsidiaries using the new digital token.

The Progmat platform emphasizes bank custody and regulatory compliance, meeting strict requirements from Japan's Financial Services Agency (FSA). This initiative is supported by Japan's clear stablecoin regulations established in 2022, which mandate licensed institutions issue stablecoins backed by assets and redeemable at face value, positioning Japan ahead of many global peers in digital currency policy.

This launch is part of a broader trend, including the related Project Pax initiative for cross-border payments using SWIFT integration, and signals a significant institutional commitment to blockchain-based finance in Japan, with plans to issue 1 trillion yen worth of stablecoins over the next three years.

(Source：Brave New Coin)