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- Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group are reportedly collaborating to issue a joint yen-pegged stablecoin.
- The stablecoin will be built on Progmat, MUFG’s token issuance framework that already supports deployments on public blockchains like Avalanche.
The total value of stablecoins in circulation surged beyond $300 billion, and according to data from DeFiLlama, the combined value of all stablecoins now stands at $304 billion, reflecting a 0.86% increase over the past week.
This figure is expected to rise further as three of Japan’s largest banks, Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corporation (SMBC), and Mizuho Bank, move forward with plans to launch fiat-backed digital tokens.
According to an October 17 report from Nikkei, a Japanese outlet, together, these giants serve more than 300,000 corporate clients, positioning their upcoming stablecoin initiative to have a significant impact on the global digital asset market.
Mitsubishi Corporation will be the first to adopt the new stablecoin for internal settlements. With a network of more than 240 subsidiaries worldwide, the conglomerate plans to utilize the token through Progmat, a blockchain platform created by Mitsubishi UFJ Financial Group (MUFG) to support regulated financial institutions.
MUFG first introduced Progmat Coin in June 2023, laying the groundwork for banks to issue digital tokens on multiple public blockchains, such as Avalanche (AVAX). Other networks include Ethereum (ETH), Polygon, and Cosmos (ATOM).
Right now, international transfers, whether for dividends, acquisitions, or customer transactions, often get tangled in a web of intermediaries, currency conversions, and lengthy processing times. Each extra step adds costs, delays, and complexity.
By using blockchain-based stablecoins, these same payments could be settled within minutes, and since the network operates 24/7, transactions won’t be slowed down by banking hours or time zone differences.
If the initiative succeeds, it would create Japan’s first unified, bank-backed stablecoin network, built on a framework that fully complies with the strict standards of the Financial Services Agency, the regulator overseeing all stablecoin issuance in the country.
Japan’s Framework and the Stablecoin Trend
On 3 June 2022, the Japanese parliament approved a Bill for a Partial Amendment to the Payment Services Act (PSA), for the Purpose of establishing a Stable and Efficient Funds Settlement System. The amendment was scheduled to come into effect in the first half of 2023, and in fact, the regulations became enforceable from 1 June 2023.
This regulatory clarity has had a big impact. According to Chainalysis’s 2025 report, released in September, Japan’s crypto adoption grew by 120% year-over-year, the strongest growth rate globally.
That outpaced other major markets like Indonesia (103%), South Korea (100%), India (99%), and Vietnam (55%), pushing Japan to the forefront of the global stablecoin adoption.
Japan’s leadership comes as other economies begin to follow suit. In Europe, a consortium of nine major banks, including DekaBank, UniCredit, Banca Sella, ING Group, CaixaBank, KBC Group, Skandinaviska Enskilda Banken, Danske Bank, and Raiffeisen Bank International, announced plans in September to launch a euro-backed stablecoin by 2026.
The project will comply with the EU’s upcoming Markets in Crypto-Assets Regulation (MiCAR) framework.
Meanwhile, the U.S. is also tightening its stablecoin framework to maintain its dominance in the global market, which is currently led by Tether (USDT), USD Coin (USDC), and Ripple (XRP). The approval of the GENIUS Act by President Donald Trump established clear federal and state pathways for stablecoin issuers to operate legally.
This aims to close regulatory gaps, allow innovation, and reinforce the U.S. dollar’s influence in the stablecoin market.
