Three Japanese Banks Complete Yen Stablecoin Cross-Border Payment Pilot

Mizuho Bank, Ltd., MUFG Bank, Ltd. and Sumitomo Mitsui Banking Corporation completed a July test of a yen stablecoin for cross-border corporate payments, as the banks target live transactions in Japan’s fiscal 2026.

The trial ran from July 17 to 23, 2026, and tested issuance, transfer and redemption processes for a cross-border payment scenario involving Mitsubishi Corporation locations in Japan and overseas. The three banks acted as joint entrustors, while Mitsubishi UFJ Trust and Banking Corporation served as trustee. The stablecoin was issued through a trust arrangement under Japan’s Payment Services Act.

Testing covered issuance, transfers and redemption, along with operational, regulatory and system requirements. The trial confirmed the joint issuance model’s feasibility and the system’s safety and reliability, and yielded practical insights.

In June, the three banks signed an MOU to establish a voluntary council to discuss operations and governance. Their proposed design would use deposits as reserves and circulate the stablecoin among bank-verified users. The design may change, and live transactions are targeted during Japan’s fiscal 2026.