Japan’s Banking Giants Unite for Yen Stablecoin Launch

TheNewsCryptoPubblicato 2026-06-10Pubblicato ultima volta 2026-06-10

Introduzione

Three of Japan's largest banks — Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group — will jointly issue a yen stablecoin by March, the end of the current financial year. They have formed a council to prepare for the launch, with the Japanese Financial Services Agency and the ruling Liberal Democratic Party expressing support. Yen-pegged stablecoins currently represent a minor part of the market, with JPYC being the most notable example. Separately, the New York State Department of Financial Services has proposed stringent new regulations for stablecoin issuers, focusing on stricter reserve custody rules, enhanced risk management, and mandatory executive certifications and audits.

Three of Japan’s largest banks said they will jointly issue a stablecoin this financial year, which ends in March. Mitsubishi UFJ Financial Group (MUFG), Sumitomo ⁠Mitsui Financial Group (SMBC) and Mizuho Financial Group will establish a council to explore operational frameworks and prepare for the issuance of stablecoins, according to a statement on MUFG’s website.

The three banks will act as “joint settlors and a trust bank or similar institution will act as trustee,” the statement said. Japan’s Financial Services Agency (FSA) signaled support for the development of a stablecoin by the three banks last November. More recently, the ruling Liberal Democratic Party (LDP) said the state should promote the usage of yen-based stablecoins.

Tokens pegged to the yen represent a negligible share of the market, accounting for less than $50 million in the $311 billion sector. The most prominent is JPYC with a market cap of around $18 million, issued by a Tokyo-based fintech of the same name.

NYSD Pushes for Stringent Regulations

The New York State Department of Financial Services released a proposed regulation for authorized payment stablecoin issuers on June 9, The Block reported on June 10. The proposal would turn stablecoin guidance issued in 2022 into formal regulation and incorporate the GENIUS Act and follow-up federal rulemaking.

The biggest change covers custody of reserve assets. Stablecoin issuers would be required to hold reserves across multiple custodians. The proposal also introduces new redemption-related measures to prevent excessive concentration of reserves at a single custodian.

Risk-management obligations would also be strengthened. Issuers would need to establish frameworks covering security, internal controls and audits, insider trading, and oversight of external service providers.

A dual-authorization system would apply to reserve management. Each month, an issuer’s chief executive officer and chief financial officer would have to certify the accuracy of reserve composition reports. Each year, issuers would also need an attestation from an accounting firm on the effectiveness of internal controls.

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Domande pertinenti

QWhich three major Japanese banks have announced a joint initiative to issue a yen-pegged stablecoin?

AMitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group (SMBC), and Mizuho Financial Group.

QWhat is the current market share of yen-pegged stablecoins in the overall stablecoin market, according to the article?

AIt is a negligible share, accounting for less than $50 million in the $311 billion stablecoin sector.

QWhat role will a trust bank or similar institution play in the Japanese banks' stablecoin issuance plan?

AIt will act as the trustee, while the three banks will act as joint settlors.

QWhat major change did the New York State Department of Financial Services propose regarding stablecoin reserve assets?

AIt proposed that stablecoin issuers be required to hold reserves across multiple custodians to prevent excessive concentration at a single custodian.

QAccording to the article, which political party in Japan recently stated that the state should promote the usage of yen-based stablecoins?

AThe ruling Liberal Democratic Party (LDP).

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