Japan's three major banking groups have completed a trial of a jointly issued yen stablecoin for cross-border payments. The test validated issuance and redemption, and the banks now turn to governance, regulation, cybersecurity and system stability before commercial deployment.
Japan's three major banking groups have completed a trial of a jointly issued yen stablecoin for cross-border payments, according to a Friday press release. The banks said the test validated the issuance and redemption process and the feasibility of a shared banking framework.
Test ran July 17 to 23 with Mitsubishi Corporation payments
According to the release, the trial ran from July 17 to 23, 2026. Mitsubishi UFJ Bank, Mizuho Bank and Sumitomo Mitsui Banking Corporation took part, alongside Mitsubishi UFJ Trust and Banking Corporation and TISI.
Participants used payments between Mitsubishi Corporation's Japanese and overseas offices as the test case. They verified the issuance, transfer and redemption processes and examined the related regulatory and operational requirements.
Three banks commission issuance, trust bank acts as trustee
Under the proposed arrangement, the three banks jointly commission the issuance of the stablecoin, while Mitsubishi UFJ Trust and Banking Corporation acts as trustee. The coin is structured as a specified trust beneficiary right under the Payment Services Act, with bank deposits as the underlying assets.
The design aims to support circulation among verified customers across the three banks' networks. It also allows large-scale distribution without a preset circulation limit.
The trial also evaluated how banks could coordinate when several institutions jointly commission issuance, including compliance with anti-money laundering and counter-terrorism financing requirements. The participants said the trial confirmed the feasibility of the joint issuance model and the system's safety and reliability.
Governance and cybersecurity come next
The next stage will focus on resolving outstanding issues before commercial deployment, including governance, regulatory compliance, cybersecurity and system stability. The banks first unveiled plans in June for a fiat-pegged stablecoin targeted for fiscal 2026.
Source: Crypto Briefing
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