FSA Supports Japan’s Major Banks in New Stablecoin Initiative

Japan’s Financial Services Agency supports a stablecoin initiative by Japan’s three major banks—MUFG, SMBC, and Mizuho—starting in November 2025. This program aims to trial yen and dollar-backed stablecoins, supported by Progmat and managed by Mitsubishi Corporation.

Japan’s Financial Services Agency (FSA) has endorsed a stablecoin initiative by Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, and Mizuho Bank, set to begin testing in November 2025.

Japan’s FSA’s backing signifies a notable shift in Japan’s financial ecosystem, focusing on regulatory compliance while integrating cryptocurrency elements.

Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, and Mizuho Bank are spearheading a yen-backed stablecoin trial. By leveraging Progmat, the project aims to refine legal frameworks within the fiscal year.

The FSA’s support marks a pivotal moment in Japan’s financial landscape, with potential cost reductions via stablecoin usage in cross-border payments. Mitsubishi Corporation oversees the initiative’s progress.

Japan’s financial industry could see significant changes with potential cost benefits and streamlined corporate settlements. Such efforts could position Japanese banks as pioneers in stablecoin deployment.

“The era of stablecoins should not be an era without regulation. Financial innovation must be based on trust, transparency and security.” — Makoto Uchida, Commissioner, FSA, Japan

It provides insights into potential benefits, including regulatory evolution toward crypto asset integration. The project suggests aims for transparency and security in financial innovation, with a focus on trust and transparency.