Japan Megabanks Finish Yen Stablecoin PoC

Mizuho Bank, MUFG Bank, Sumitomo Mitsui Banking Corporation (SMBC), Mitsubishi UFJ Trust and Banking Corporation and TISI announced on 16 October 2026 (Tokyo) that they completed a proof-of-concept from 17 to 23 July 2026 on joint stablecoin issuance and advanced cross-border payments.

This is a PoC result, not a public product launch. The parties say they confirmed the safety and reliability of the system and the feasibility of a joint issuance model. Social implementation remains an outlook, not a switch-flip today.

Who took part, and under what rules

The PoC received support from the Financial Services Agency of Japan’s FinTech PoC Hub (initiative approved November 2025). Stablecoins in the test were issued as specified trust receivable rights under Japan’s Payment Services Act, based on a trust agreement in which Mizuho, MUFG Bank and SMBC acted as joint principal trustees and Mitsubishi UFJ Trust and Banking as agent trustee.

Roles in brief (per the joint release):

Mizuho, MUFG Bank, SMBC: scheme design; verified issuance, circulation, transfer and redemption operations; cross-border regulatory/practical responses. SMBC provided the blockchain platform built by TISI.
Mitsubishi UFJ Trust and Banking: agent-trustee operations, user-protection measures, trust-asset administration.
TISI: wallet infrastructure integrated with issuance systems.

The cross-border use case assumed payments between Mitsubishi Corporation’s Japanese and overseas locations.

Design notes — and the “may change” caveat

The banks describe a joint-issuance model meant to secure broad circulation via each bank’s customer base, using a trust-based scheme without a circulation cap, with trust assets invested in bank deposits and circulation limited to verified users. The release states twice that this is the design currently assumed and may be subject to change.

Outlook versus a live launch

Looking ahead, the parties say they will continue detailed assessments toward social implementation, working with authorities and other stakeholders on user protection, AML/CFT, cybersecurity and system stability.

Separately, the release points back to a 10 June 2026 notice — “On the Launch of Live Transactions of a Three-Bank Jointly Issued Stablecoin in FY2026…” — as the direction of travel for studying issuance designed for practical payments and remittances. That June notice is an aim for live transactions in FY2026; it is not today’s announcement of a retail product going live, and the design remains subject to change.

Why it matters

Bank-issued yen stablecoins sit in a different category from offshore dollar tokens: they are being tested inside Japan’s Payment Services Act trust framework, with megabank balance sheets and an agent trustee. A successful joint-issuance PoC matters because circulation depends on multiple customer bases sharing one coin — hard to do without shared ops, AML and redemption rules.

For comparison on bank-backed fiat stablecoins elsewhere, TSN covered Qivalis and DNB’s EMI authorisation path for a euro stablecoin, plus broader rails such as Mastercard–BVNK and Deutsche Bank crypto custody.

What’s still unknown

When (or whether) FY2026 live transactions begin under the June notice
Final coin name, chains and retail versus wholesale scope
How overseas legs clear AML when multiple entrustors are involved beyond the Mitsubishi Corporation test

What this means

PoC completed 17–23 July 2026 on joint yen stablecoin issuance and cross-border payments.
Result: feasibility of joint model and system safety/reliability confirmed (banks).
Not a public live launch; FY2026 live-transactions aim remains from the June notice, design may change.