Japan's FSA to Support Country's 3 Largest Banks in Stablecoin Issuance

Japan's Financial Services Agency (FSA) announced it will support the nation's three largest banking groups—Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group (SMBC), and Mizuho Financial Group—in developing a proof-of-concept for issuing a stablecoin. This stablecoin is intended to function as an electronic payment instrument. The experiment is scheduled to begin this month and continue indefinitely. This move comes as stablecoins have seen significant global growth, surpassing $300 billion in market cap, and Japan recently saw the unveiling of its first yen-pegged stablecoin by startup JPYC. Traditional finance institutions, regulators, and lawmakers in Japan are now exploring how to integrate stablecoins into existing financial and technological frameworks.

(Source：CoinDesk)