Oct 19, 2025

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Japan’s Largest Banks Plan Yen Stablecoin Launch by December 2025

Mitsubishi UFJ Financial Group (MUFG), Japan’s largest bank, along with Sumitomo Mitsui and Mizuho, plans to introduce a yen-pegged stablecoin by December 2025. This initiative leverages MUFG's Progmat blockchain platform and focuses on enhancing payment settlements for corporate clients.

Efficiency in Transactions

The stablecoin will facilitate low-cost internal and cross-border transfers.
Mitsubishi Corp. will utilize it initially for managing dividends and transactions across 240 subsidiaries.
Aims to reduce traditional banking delays for over 300,000 clients.

Technical and Regulatory Aspects

Progmat supports multiple blockchains: Ethereum, Polygon, Avalanche, and Cosmos, with expansion plans.
Japan’s Financial Services Agency is finalizing approvals for yen-backed stablecoins, with potential for a USD-pegged variant.

Rising Crypto Adoption in Japan

Crypto adoption in Japan increased by 120% year-over-year by June 2025.
The FSA approved JPYC’s yen stablecoin, paving the way for this bank-led project.