Japan’s top lenders Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corp. (SMBC), and Mizuho Bank are set to jointly launch a yen-pegged stablecoin. Their goal is to upgrade how companies pay and settle accounts. In fact, these three banks serve more than 300,000 corporate customers across Japan.
Now, they plan to use MUFG’s Progmat platform, hoping to make payments smoother and cheaper. With a standardized token, businesses will be able to move money quickly and efficiently both within and between firms. The banks expect to roll out their stablecoin before year’s end.
It’s impressive to see such established names embracing crypto technology. Personally, it’s clear that Japan’s financial giants want to stay ahead in fintech, and this step looks ambitious.
Mitsubishi Corporation
The rollout starts with Mitsubishi Corporation, a firm boasting over 240 subsidiaries worldwide. It will be the first to test the stablecoin for internal settlements. This move targets cost savings in dividend transfers, acquisitions, and general transactions.
Companies may benefit from fewer international fees and less paperwork. If successful, the project could establish Japan’s first unified network for bank-backed stablecoins. Such progress matters, because global businesses face frequent headaches with currency transfers. It feels like the right time for real change.
The Progmat Platform’s Expansion
MUFG brought the Progmat stablecoin platform online in June. This system will let Japanese banks issue stablecoins on major blockchain networks, including Ethereum, Polygon, Avalanche, and Cosmos.
MUFG aims to include more networks later on. Recently, Binance Japan partnered with Mitsubishi UFJ Trust and Banking Corporation (MUTB) to explore stablecoin issuance using Progmat Coin. Binance Japan’s Takeshi Chino said that stablecoins fill a vital role for the financial sector. As Web3 adoption grows, these assets should become even more important for regular businesses and innovative startups alike.
Frankly, it’s exciting to watch such momentum build. Stablecoins have been discussed for years, but now real action is happening at scale.
Stablecoin Competition Is Up
Japan’s push for stablecoins isn’t new. In August, the Nikkei reported that the nation’s Financial Services Agency (FSA) is getting ready to approve yen-based stablecoins. Tokyo fintech firm JPYC was tapped to lead the rollout.
At the same time, Monex Group, another Tokyo heavyweight, announced plans to create its own yen-pegged stablecoin. Monex Chairman Oki Matsumoto warned that without action, his firm might get left behind. Still, he noted that issuing stablecoins will require big investments and robust systems.
Change often brings challenges, but these developments suggest stablecoins will soon be a staple in Japanese finance. Personally, I think this collaborative approach is smart. By working together, these banks can set a secure and practical standard, possibly reshaping payments across the region. If the rollout succeeds, many businesses could benefit.
Written By fazal Ul Vahab C H