Japan’s Financial Services Agency will back a jointly issued stablecoin project by MUFG, SMFG, and Mizuho to enable cross-border payments, signaling a coordinated move by the three megabanks.

JPYC recently launched the world’s first yen-pegged stablecoin backed by domestic savings and government bonds, underscoring growing activity in the stablecoin space.

The pilot will test multi-bank issuance from legal and operational angles to assess regulatory compliance and practical feasibility for real-world use.

No formal launch date has been set; pilot testing and regulatory evaluation are advancing with a broader rollout anticipated later.

The project is slated to run from November 2025 onward to determine lawful and appropriate execution under current financial regulations.

Regulatory emphasis covers reserves, disclosures, audits, wallet security, data privacy, and anti-money-laundering controls to protect consumers and financial stability.

The FSA plans to publish pilot results and conclusions upon completion, with legal and compliance insights shared on its website as the pilot progresses.

The FSA provides advisory support on legal interpretations and foreign regulatory trends through a fintech support program established for this initiative.

Regulators are encouraging crypto-related innovation in Japan while expanding oversight to ensure safe deployment.