TL;DR
Japan’s three largest banks successfully completed a joint yen stablecoin trial using a trust-based structure for cross-border corporate payments between Mitsubishi Corporation locations in July.
The pilot tested issuance, transfer, redemption, AML/CFT controls, regulatory compliance and system operations, confirming technical feasibility without launching a commercial product.
The banks plan further implementation work toward actual transactions during fiscal 2026, while exploring deposit-backed circulation among verified users and broader onchain financial infrastructure.
Japan’s three largest banks have completed a joint trial of a yen-denominated stablecoin designed for cross-border corporate payments. According to the official announcement , Mizuho Bank, MUFG Bank and Sumitomo Mitsui Banking Corporation ran the test from July 17 to July 23 with Mitsubishi UFJ Trust and Banking Corporation and TISI. The pilot used a trust-based structure and targeted payments between Mitsubishi Corporation’s Japanese and overseas operations. For readers tracking stablecoins , the experiment moves Japan’s bank-led digital money initiative from planning into a completed operational test.
Banks Test Joint Issuance and Cross-Border Settlement
Under the trial, the three megabanks acted as joint settlors while Mitsubishi UFJ Trust served as trustee. The stablecoin was issued as a specified trust beneficiary right under Japan’s Payment Services Act. Participants tested the full process of issuance, transfer and redemption while examining regulatory compliance, user-protection measures and system design. The banks also evaluated how trustees should implement safeguards and how participating banks should address service-specific regulatory requirements. The structure follows the banks’ earlier work toward a jointly issued Japanese stablecoin . The trial confirmed the feasibility of a multi-bank issuance model rather than announcing a commercial product already available to customers.
Cross-border settlement was the central use case. The project examined operational arrangements when multiple banks participate as settlors, AML/CFT controls for different scenarios and the effectiveness of the underlying system. Mitsubishi Corporation’s domestic and overseas locations provided the model for testing how the token could move through issuance, transfer and fiat redemption. The design fits a wider focus on tokenized cross-border settlement . The banks said the test produced practical knowledge and confirmed the system’s safety, reliability and technical feasibility.
The project was conducted under an initiative selected in November 2025 for support through Japan’s Financial Services Agency FinTech Proof-of-Concept Hub payment modernization program. Participants said they will continue examining implementation while coordinating with regulators, financial institutions, corporations and technology providers. Their work includes a design backed by deposits and intended for circulation among users who have completed bank identity checks, with efforts toward actual transactions during fiscal 2026. They also plan to explore bringing deposits and other financial assets onchain as part of that work. Similar infrastructure questions are increasingly central to blockchain-based corporate payments . The completed pilot demonstrates operational feasibility, but commercial deployment remains a future step rather than a finished launch.
