Following New FSA Stablecoin Rules, Japan’s Banks Plan Yen Pegged Tokens

On Oct 17, 2025

Japan’s three largest banks — Mitsubishi UFJ Financial
Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group — are
planning to jointly issue stablecoins, according to a report by the Nikkei
business daily on Friday (today).

Japan has been taking structured steps to regulate and
expand the use of stablecoins. Earlier this year, the Financial
Services Agency granted approval to SBI VC Trade to list Circle’s USDC,
making it the first foreign dollar-backed stablecoin legally available in the
country.

Digital
assets meet tradfi in London at the fmls25

Yen Pegged Stablecoins Target Settlement Efficiency

The digital currencies will be pegged to real-world assets,
starting with the Japanese yen. The banks are reportedly developing a shared
framework that will allow corporate clients to transfer stablecoins between
institutions under consistent technical and regulatory standards.

🇯🇵JAPANESE BANKS UNITE TO LAUNCH STABLECOIN!Japan’s top 3 banks — MUFG, Sumitomo Mitsui & Mizuho — are teaming up to launch a new stablecoin pegged to both the yen and the US dollar. pic.twitter.com/bplA7tzHrw
— Coin Bureau (@coinbureau) October 17, 2025

The initiative is aimed at improving settlement efficiency
and supporting the adoption of blockchain-based payments within Japan’s
financial system. The report added that a U.S. dollar-pegged stablecoin could
be introduced later.

This article was written by Tareq Sikder at www.financemagnates.com.
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