Three of Japan’s largest banks have joined forces to create a yen-pegged stablecoin, marking a significant advance in the country’s digital payment infrastructure. MUFG Bank, Sumitomo Mitsui Banking Corporation (SMBC), and Mizuho Bank will utilize the Progmat platform to launch this innovative payment solution. The collaboration aims to modernize corporate settlements and reduce transaction costs for their combined network of over 300,000 corporate clients.
🇯🇵JAPANESE BANKS UNITE TO LAUNCH STABLECOIN!
— Coin Bureau (@coinbureau) October 17, 2025
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
The Progmat Platform and Implementation
The stablecoin initiative builds upon MUFG’s Progmat Coin platform, which launched in June. This technical foundation supports stablecoin issuance across multiple blockchain networks, including Ethereum, Polygon, Avalanche, and Cosmos. The platform offers a unified framework for bank-backed digital currencies, ensuring secure and efficient transactions. The three banking giants hold stakes in Progmat, demonstrating their commitment to this technological advancement.
Corporate Implementation and Benefits
Mitsubishi Corporation will lead the initial implementation phase for internal settlements across its 240 global subsidiaries. This implementation will streamline international transfers for dividends, acquisitions, and customer transactions. The new system will reduce administrative burdens and cut transaction fees significantly. The standardized token design ensures seamless interoperability for both internal company payments and transactions between different organizations.
Setting New Standards in Digital Finance
The joint stablecoin project represents more than just a technological upgrade – it signals a fundamental shift in Japan’s financial landscape. The initiative aligns with recent regulatory developments, as Japan’s Financial Services Agency prepares to approve yen-based stablecoins. This collaboration among major banks creates a robust foundation for future digital currency adoption. The project’s success could establish Japan’s first comprehensive bank-backed stablecoin network, positioning the country as a leader in regulated blockchain settlements.
The Future of Digital Payments
As digital transformation reshapes global finance, this stablecoin initiative positions Japanese banks at the forefront of innovation. The project opens new possibilities for faster, more efficient corporate transactions. The consortium plans to expand their offerings with potential USD-pegged stablecoins in the future. This development signals a broader trend toward integrating traditional banking with modern blockchain technology. Follow Genfinity for continued updates on this evolving story and other developments in digital finance.
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