Japan’s Three Major Banks Complete Joint Stablecoin Trial for Cross-Border Payments

Highlights:

• Japan’s three major banks completed a joint yen stablecoin trial to explore faster cross-border payments.
• The banks tested issuing, transferring, and redeeming stablecoins while reviewing security and international payment rules.
• MUFG, Mizuho, and SMBC plan to begin real stablecoin transactions before Japan’s 2026 fiscal year ends.

Japan’s three major banks have completed a trial of a shared yen stablecoin for international payments. Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation (SMBC) tested a system that would allow them to issue and transfer the same digital token. They worked with Mitsubishi UFJ Trust and Banking Corporation and technology company TISI.

According to an October 16 announcement from TISI, the trial ran from July 17 to July 23. The companies tested cross-border payments using a scenario involving Mitsubishi Corporation’s operations in Japan and overseas. They have not announced a public launch.

INTEL: Japan's three largest banks Mizuho, MUFG and SMBC complete a joint trial of yen stablecoin payments for Mitsubishi Corporation's cross-border transactions pic.twitter.com/WZxCmJcJK3

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Japan’s Major Banks Test Joint Yen Stablecoin Issuance

The three banks worked together to test a shared yen stablecoin. Mitsubishi UFJ Trust served as trustee, while TISI developed the wallet and issuance system. SMBC provided the blockchain platform. During the trial, the banks tested issuing, transferring, and redeeming the stablecoin under Japan’s Payment Services Act. The token would be backed by yen deposits held in trust.

The banks also examined how customers could use the stablecoin across participating institutions. Users would need to complete identity checks through their banks. In addition, the companies considered allowing stablecoin issuance without a fixed limit to support wider use.

Banks Test Cross-Border Payments and Security Measures

The trial also examined payments between Mitsubishi Corporation’s Japanese and overseas operations. The banks checked whether the system could handle token issuance, transfers, and redemption while meeting regulatory requirements. International payments often involve several financial institutions. The banks hope blockchain-based payments could reduce processing times and improve efficiency. However, the trial did not establish any specific cost or time savings.

The participants also reviewed measures to prevent money laundering and terrorist financing. Mitsubishi UFJ Trust examined customer protection rules, deposit management, and redemption procedures. Meanwhile, TISI assessed the technical systems supporting the payment process. The companies reported that the trial confirmed the feasibility of their joint issuance model. They also assessed the system’s safety and reliability.

However, the announcement did not disclose the value of transactions tested or compare settlement speeds with traditional payment systems.

Japanese Banks Plan Real Stablecoin Transactions in Fiscal 2026

Japan’s Financial Services Agency (FSA) selected the project for support under its Payment Innovation Project in November 2025. The initiative helps financial institutions test new payment systems while addressing regulatory requirements.

Earlier, in a June 10 announcement, MUFG, Mizuho, and SMBC said they planned to begin real stablecoin transactions during Japan’s 2026 fiscal year, which ends in March 2027. The banks also agreed to establish a joint council to examine the system’s governance, operations, and regulatory requirements.

Following the trial, the companies plan to continue reviewing cybersecurity, customer protection, and system stability before wider use. The October announcement also referred to a separate September 29 trial involving TradeWaltz, a platform used in trade-related operations. The banks are exploring how blockchain technology could support other financial services, including deposits and traditional financial assets.

In a separate development, Japan’s SBI Holdings recently partnered with South Korea’s KB Kookmin Card to explore stablecoin payments for Japanese tourists visiting South Korea. The companies plan to test payment processing, refunds, and security before deciding on a commercial launch.

South Korea’s KB Kookmin Card signed an MOU with Japan’s SBI Holdings to test identity checks for AI agents alongside cross-border crypto payments, targeting Japanese tourists using stablecoins at South Korean merchants.

• The partnership links traditional card networks with… pic.twitter.com/pcewFagQMU

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