The test simulated transfers between Mitsubishi Corporation's domestic and overseas offices and examined the regulatory, operational and system requirements for implementing the service.
Japan’s three major banking groups have completed a trial of a jointly issued yen stablecoin for cross-border payments, validating the issuance and redemption process and the feasibility of a shared banking framework, according to a Friday press release .
The three lenders first unveiled plans in June to formalize a basic agreement and establish a council to coordinate the development of a fiat-pegged stablecoin targeted for fiscal 2026. The initiative followed a pilot launched with Japan’s Financial Services Agency in November 2025 and was part of a push by Japanese banks to develop blockchain-based payment infrastructure.
According to the release, the trial ran from July 17 to 23, 2026, with Mitsubishi UFJ Bank, Mizuho Bank and Sumitomo Mitsui Banking Corporation participating alongside Mitsubishi UFJ Trust and Banking Corporation and TISI.
Using payments between Mitsubishi Corporation’s Japanese and overseas offices as a test case, the participants verified the stablecoin’s issuance, transfer and redemption processes and examined the associated regulatory and operational requirements.
Under the proposed arrangement, the three banks jointly commission the issuance of the stablecoin, while Mitsubishi UFJ Trust and Banking Corporation acts as trustee. The stablecoin is structured as a specified trust beneficiary right under the Payment Services Act, with bank deposits serving as the underlying assets.
The proposed design aims to support circulation among verified customers across the three banks’ networks, while allowing for large-scale distribution without a preset circulation limit.
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The three banks established the experiment’s framework and examined issuance and payment requirements, while the trust bank assessed trustee operations and user safeguards. TISI integrated the blockchain-based issuance system and wallet infrastructure.
The experiment also evaluated how banks could coordinate when multiple institutions jointly commission issuance, including compliance with anti-money laundering and counter-terrorism financing requirements.
As noted, participants examined system effectiveness, asset management, user protection and practical arrangements for issuing and redeeming the stablecoin. They said the trial confirmed the feasibility of the joint issuance model and the system’s safety and reliability, while providing operational insights for future implementation.
The next stage will focus on resolving outstanding issues before commercial deployment, including governance, regulatory compliance, cybersecurity and system stability. The three banks are also pursuing related blockchain projects involving traditional asset trading, ownership transfers and trade settlement through TradeWaltz.
The banks said they would continue working with regulators, financial institutions, businesses and technology providers to develop accessible digital payment services and support the adoption of on-chain deposits and other financial assets.