Japan's Megabanks Pass Yen Stablecoin Exam, Now Wait for Real-World Recess 💴

Japan's three largest banks — Mizuho, MUFG and SMBC — completed a joint yen stablecoin pilot for cross-border payments, the group announced on October 16. The test, which ran from July 17 to 23, 2026, is being positioned as a template for bank-issued digital money, with the consortium targeting real transactions in fiscal 2026, which runs from April 2026 to March 2027.

The three megabanks and two partners issued a single shared yen token and tested the full lifecycle end to end. Mitsubishi UFJ Trust and Banking acted as trustee, while technology provider TISI Inc. joined the project. The banks operated as joint settlors, issuing the token under Japan's Payment Services Act, with circulation limited to KYC-verified users at participating banks and no cap on supply. Bank deposits backed the tokens.

The pilot's main use case was cross-border settlement between Japanese headquarters and the overseas offices of Mitsubishi Corporation, covering issuance, transfer and redemption. Participants reported the test confirmed the safety, reliability and operational viability of joint issuance, while also running anti-money laundering and counter-terrorist financing checks. SMBC provided the blockchain platform that TISI built.

The project was selected in November 2025 under the Financial Services Agency's FinTech PoC Hub and Payment Innovation Project. In June, the banks announced a joint council to study governance and operations ahead of any live rollout.