- Among the participating banks are Mizuho Bank, Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, and Mitsubishi Corporation.
- The participating institutions collectively serve over 300,000 corporate clients.
Japan is taking another decisive step into blockchain-powered payments. The country’s financial regulator has endorsed a joint initiative between its largest banks and corporations to roll out yen-backed stablecoins — a move that could reshape how businesses handle domestic transactions.
The Financial Services Agency (FSA) launched its “Payment Innovation Project” to explore how blockchain technology can streamline payments and settlements. The initiative brings together Mizuho Bank, Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, Mitsubishi Corporation, and Progmat, the stablecoin issuance platform developed by MUFG.
According to the FSA, the project will begin issuing payment stablecoins this month. The regulator said the effort aims to enhance user convenience, boost corporate productivity, and modernize Japan’s financial infrastructure.
The participating banks and firms collectively serve more than 300,000 corporate clients, underscoring the scale of the initiative and its potential impact on Japan’s payment landscape.
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Corporate Settlements And Blockchain Efficiency
The move follows earlier reports that these financial heavyweights plan to digitize corporate settlements and reduce transaction costs through a yen-based stablecoin built on MUFG’s Progmat platform. If successful, the system could pave the way for more efficient interbank transfers and digital business payments.
The project also comes days after Tokyo-based fintech JPYC launched Japan’s first yen-backed stablecoin, signaling growing momentum in the country’s blockchain payment ecosystem. JPYC’s president, Noriyoshi Okabe, revealed that several firms are already preparing to integrate the new token.
Japan’s regulators have been increasingly active in shaping crypto policy. Stricter oversight recently prompted Bybit, the world’s second-largest crypto exchange by trading volume, to pause new user registrations in the country as it adapts to fresh regulatory demands.
At the same time, authorities appear to be opening the door to more institutional participation. Reports suggest the FSA is considering rules that would allow banks to hold cryptocurrencies like Bitcoin as investment assets — a major policy shift in one of Asia’s most tightly regulated financial markets.
Meanwhile, Japan’s Securities and Exchange Surveillance Commission is reportedly drafting anti–insider trading rules for the crypto market, granting it powers to investigate and fine violators.
