Mizuho, MUFG and SMBC complete yen stablecoin pilot
Yen stablecoin pilot wraps up
Mizuho Bank, MUFG Bank and Sumitomo Mitsui Banking Corporation (SMBC) have completed a joint yen stablecoin pilot that tested issuance, transfer and redemption for Mitsubishi Corporation. The banks confirmed the feasibility of a trust‑based, deposit‑backed stablecoin under Japan’s Payment Services Act.
The trial ran from July 17 to July 23, 2026, according to an October 16 joint announcement. It examined a multiple‑bank issuance model, anti‑money‑laundering controls, user identity checks and the operational arrangements needed for cross‑border payments between Mitsubishi Corporation’s Japanese and overseas locations.
Key details of the joint test
- Pilot dates: July 17‑23, 2026.
- Participants: Mizuho, MUFG, SMBC as joint settlors; Mitsubishi UFJ Trust and Banking Corporation as trustee.
- Stablecoin is trust‑based under Article 2, paragraph 9 of Japan’s Payment Services Act, with bank deposits as backing.
- SMBC provided the blockchain platform built by TISI, which also integrated wallet infrastructure and related business processes.
What the banks said in their October announcement
The banks’ joint statement confirmed the feasibility, safety and reliability of the joint issuance model. It outlined the next step as further assessment toward practical deployment, focusing on user protection, AML controls and system stability.
Related June agreement and trust arrangement
A June 2026 agreement established a joint council to study issuance infrastructure, operating arrangements and governance. The trust arrangement link details the settlor and trustee roles used in the pilot.
What is confirmed
- Pilot dates and the three participating banks.
- Trust structure: joint settlors (Mizuho, MUFG, SMBC) and trustee (Mitsubishi UFJ Trust).
- Backing of the stablecoin by bank deposits; the token itself is the payment instrument.
- Platform provider: SMBC/TISI with integrated wallet infrastructure.
- Examination of AML/CTF controls and identity verification for users.
- Banks described shorter settlement times and more efficient operations as expected benefits.
What remains unclear
- Underlying blockchain name is not disclosed.
- Overseas destination of the payments and the foreign‑exchange leg are unspecified.
- No transaction volumes, payment values or measured time/cost savings were reported.
- A specific commercial launch date or firm timeline has not been announced.
Why this matters
The pilot demonstrates that Japanese megabanks can cooperate on a regulated, deposit‑backed stablecoin that could enable faster, more efficient cross‑border payments for domestic firms, moving traditional finance toward tokenized settlement solutions.
Next steps
The banks will continue studying a deposit‑backed stablecoin focused on payment and remittance needs. Further assessment will cover user protection, AML controls and system stability, though no concrete launch date has been provided.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.