Amidst the Global Push for Stiblecoin, recent reports claim that three major Japanese banks are preparing to issue a Yen-Pegled token for the World.
Japanese megabanks to rollout stablecoin this year
On Friday, news media outlet Nikkei Asia reported that Mitsubishi UFJ Financial Group (MUFG) Bank, Sumitomo Mitsui Banking Corp., and Mizuho Bank are preparing to jointly launch a stablecoin “to promote settlements made with pegged cryptocurrencies.”
According to the report, three major banks, serving more than 300,000 clients combined, plan to establish a stablecoin framework using the Tokyo-based Fintech Company’s system.
Apparently, MUFG launched a platform in 2023 to facilitate the issuance of bankable stablecoins after the introduction of a fee in 2022 that prohibited non-banking institutions from issuing stablecoins.
Megabanks are set to freeze their tokens for payments within and between companies. Japan Trading House Mitsubishi Corp., which has more than 240 operating companies under its umbrella, will be the first institution to use the token that is quickly suspected of internal financial settlement.
Nikkei noted that the company expects to reduce fees and administrative burdens, both internally and externally, if the token is widely used.
Banks will initially focus on the yen-pegged stablecoin, but plan to issue a USD-pegged version in the future. In addition, they expect to be released before the end of the year following the evidence of the evidence.
Control Efforts Suppress adoption in Asia
Megabanks’ exit plan comes as the sector is gaining significant momentum in Japan and Asia. In August, Japan’s Financial Services Agency (FSA) was preparing for its first yen-backed approval this fall. Under the Japanese framework, only licensed transfer companies, trust companies, and banks are allowed to issue tokens.
The Token will be issued by Tokyo Fintech Company JHYC, which was in the process of registering as a money transfer company at the time. Additionally, it will be supported by Japanese Yen reserves, including bank deposits and government bonds.
Noritaka OKABE, CEO of Jpyc, asserted that Yen-Pegged stablecoins could boost the Japanese bond market, as donors could increase demand for government bonds. He highlighted that stther and the circle have become the biggest buyers of US plans, and were noted by the US Treasury Secretary, Scott Bessent, in August.
Meanwhile, Hong Kong has been working to establish itself as one of the world’s Crypto Hubs, developing significant legislation to regulate the sector. Hong Kong’s legislative council passed the stablecoin ordinance in May, which was lifted on August 1, and is expected to issue the first batch of licenses early next year.
Similarly, South Korea has seen many bills related to the issuance and distribution of KRW-Pegged stablecoins presented at the National Assembly. The highly anticipated regulatory framework is expected to be released this quarter. In September, BDAPs of Digital Detiodian BDACS and financial institution Woori Bank launched the first KRW-Pegged Equid Stablecoin, KRW1.
It is worth noting that Japan emerged as the fastest growing crypto market in the Asia-Pacific Region (APAC) in 2025, according to Tachalysis. The report pointed out that growth in Japan’s natural environment is due to favorable policy developments in recent years.
As a result, Japan has surpassed other leading nations, including India, South Korea, and Vietnam, in terms of revenue of 120% in the 12 months leading up to June 2025.
Bitcoin (BTC)'s performance in the one-week chart. Source: BTCUSDT on TradingView
Featured image from unscwassh.com, chart from artIngView.com
Planning process At Bitcoinist we focus on delivering well-researched, accurate, and unlimited content. We maintain strict sourcing standards, and each page receives diligent review by our team of senior technical experts and experienced editors. This process ensures the integrity, relevance, and value of our content for our readers.
