Japan’s Biggest Banks to Test Common Stablecoin with Regulator’s Blessing

In a powerful show of unity, Japan’s three banking giants—Mizuho, MUFG, and SMBC—are collaborating on a shared stablecoin project with the full support of the national financial regulator.

The Financial Services Agency (FSA) announced the pilot, which will serve as the first test case for its newly created Payment Innovation Project (PIP).

The goal is to prove that these competing banks can work together to issue a digital currency for payments that is both innovative and fully compliant with the law. Slated to begin in late 2025, the experiment’s insights on regulation and operations will later be shared with the public.