Japan’s regulator backs joint stablecoin project by three major banks

Japan's Financial Services Agency (FSA) has officially backed a stablecoin pilot project involving the country's three major banks: Mizuho Bank, MUFG, and SMBC. This coordinated effort, which also includes Mitsubishi Corporation, Progmat Inc., and Mitsubishi UFJ Trust and Banking Corporation, aims to examine how multiple banking groups can jointly issue stablecoins classified as "electronic payment instruments" under Japanese law while ensuring regulatory compliance. The project, which begins in November 2025, is the inaugural initiative under the FSA's new Payment Innovation Project (PIP) and seeks to verify the lawful and appropriate execution of such a system according to current financial regulations. Results and insights will be published later on the FSA's website, marking a significant step toward modernizing Japan's financial infrastructure for faster digital transactions.

(Source：The Block)