Amid the global push for stablecoin adoption, recent reports claim that three major Japanese banks are preparing to issue a yen-pegged token for global settlements before the end of the year.
According to the report, the three major banks, which serve over 300,000 clients combined, plan to establish a framework for the stablecoin utilizing the system of Tokyo-based fintech company Progmat.
Notably, MUFG launched the platform in 2023 to facilitate the issuance of bank-backed stablecoins after the enactment of a 2022 bill that prohibited non-banking institutions from issuing stablecoins.
Nikkei noted that the company expects to reduce remittance fees and administrative burdens, both internally and externally, if the token becomes widely used.
The megabanks’ rollout plan comes as the sector gains significant momentum in Japan and Asia. In August, Japan’s Financial Services Agency (FSA) was preparing to approve the first yen-backed stablecoin this fall. Under Japan’s framework, only licensed money transfer companies, trust companies, and banks are allowed to issue the tokens.
The token would be issued by Tokyo fintech company JPYC, which was in the process of registering as a money transfer company at the time. Additionally, it would be backed by Japanese yen reserves, including bank deposits and government debt.
Meanwhile, Hong Kong has been working to establish itself as one of the leading crypto hubs worldwide, advancing crucial legislation to regulate the sector. Hong Kong’s Legislative Council passed the Stablecoin Ordinance in May, which was enacted on August 1, and is expected to issue the first batch of licenses at the start of next year.
As a result, Japan surpassed other leading nations, including India, South Korea, and Vietnam, in terms of on-chain value received, which grew by 120% in the 12 months leading to June 2025.
