In an indication of the growing popularity of digital payments in a nation where cash and credit cards are still widely used, Japan’s three biggest banks announced on Wednesday that they will jointly issue stablecoins during the current fiscal year ending in March 2027.
According to a statement, the banking divisions of the three biggest financial groups in Japan—Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group—will form a council to review operational frameworks and get ready for the issuance.
The project’s trial phase has been supported by Japan’s Financial Services Agency as part of the nation’s initiatives to improve payment systems using blockchain technology.
President Donald Trump of the United States has publicly supported stablecoins, and interest in them has been rising worldwide.
However, some officials are worried that they would make it easier for money to move outside of regulated banking systems.
In October of last year, the Japanese company JPYC started releasing yen-pegged stablecoins, which is a small but gradual development in a nation where credit cards and cash are still the most popular forms of payment.
A ruling party group called for encouraging the use of yen-based stablecoins for settlement in Asia in a recommendation this month.
