Key Notes
- MUFG, Mizuho and SMBC announced completion of their joint stablecoin pilot on October 16 after tests conducted in July.
- The test verified issuance, transfers and redemption for a corporate cross-border payment scenario.
- Commercial transactions remain a separate fiscal 2026 goal, with further assessments required before deployment.
Japan’s three megabanks — MUFG Bank, Mizuho Bank and Sumitomo Mitsui Banking Corporation — have completed a joint stablecoin pilot for cross-border payments, advancing their effort to bring shared digital money into corporate finance.
The banks announced the results on October 16. The test ran from July 17 to July 23 and examined a payment scenario between Mitsubishi Corporation’s Japanese and overseas locations. Mitsubishi UFJ Trust and Banking Corporation and technology provider TISI also participated.
The participants said they verified the processes for issuing, transferring and redeeming the stablecoin and confirmed the feasibility of the multi-bank model. The announcement reports a proof of concept; it does not mark the general launch of a commercial international payment service.
A Shared Token, With Banks Behind the Design
The project’s structure predates the completed trial. In their November 2025 project announcement, the banks described a trust arrangement for issuing stablecoins as specified trust receivable rights under Japan’s Payment Services Act. Mitsubishi UFJ Trust and Banking would perform the trustee role, while the three commercial banks would jointly define requirements and evaluation criteria.
That initial proposal received support through Japan’s Financial Services Agency FinTech Proof-of-Concept Hub. Its scope included regulatory compliance and practical user-protection measures, alongside the technical question of whether a shared token could support cross-border corporate payments.
The distinction between a commercial bank and the trust bank matters here. MUFG Bank is one of the three participating banks; Mitsubishi UFJ Trust and Banking performs a separate role in administering the trust-based issuance arrangement.
For the July test, SMBC supplied a blockchain platform built by TISI. TISI integrated wallet infrastructure with the issuance system and related business processes. The currently envisaged design uses bank deposits as backing assets and limits circulation to users who have completed bank identity checks; the participants say that design may change.
Commercial Transactions Remain the Next Goal
In June, the three banks set a goal of conducting actual commercial transactions during Japan’s fiscal year 2026, which ends in March 2027. They also agreed to establish a voluntary council to examine operational frameworks, governance and the infrastructure needed for practical implementation.
That council is intended to address how a jointly issued asset would function across participating institutions, including potential collaboration with additional financial institutions and other stakeholders. A common issuance model still requires agreement on systems, procedures and responsibility for day-to-day operations.
CoinScreamer covered the June roadmap when it was announced. The completed pilot supplies a new technical and operational milestone, while the earlier fiscal-year objective remains a target rather than confirmation that commercial service is already available.
Separately, our Visa Direct coverage describes how USDC prefunding has moved into commercial production through Inyo Global. That service concerns funding payouts through an existing payment network; the Japanese project concerns a jointly issued yen stablecoin and the banks’ own corporate-payment framework.
The Japanese participants will continue detailed assessments before practical deployment. The published results do not identify the overseas destination, disclose the value transferred or provide measured settlement-time or cost savings. The confirmed advance is the completion of the joint test, with commercial availability still to be established.
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