Japan’s megabank trio completes joint stablecoin payment test

Japan’s three major banking groups have completed a trial of a jointly issued yen stablecoin for cross-border payments, validating the issuance and redemption process and the feasibility of a shared banking framework, according to a Friday press release. The three lenders first unveiled plans in June to formalize a basic agreement and establish a council to coordinate the development of a fiat-pegged stablecoin targeted for fiscal 2026. The initiative followed a pilot launched with Japan’s Financial Services Agency in November 2025 and was part of a push by Japanese banks to develop blockchain-based payment infrastructure. According to the release, the trial ran from July 17 to 23, 2026, with Mitsubishi UFJ Bank, Mizuho Bank and Sumitomo Mitsui Banking Corporation participating alongside Mitsubishi UFJ Trust and Banking Corporation and TISI. Using payments between Mitsubishi Corporation’s Japanese and overseas offices as a test case, the participants verified the stablecoin’s issuance, transfer and redemption processes and examined the associated regulatory and operational requirements. Under the proposed arrangement, the three banks jointly commission the issuance of the stablecoi...