Japan Banks to Launch Multi-Chain Yen Stablecoin by End-2025
MUFG, SMBC and Mizuho will issue a yen stablecoin on the MUFG Progmat blockchain platform by December 2025. The multi-chain stablecoin, compatible with Ethereum, Polygon, Avalanche and Cosmos, aims to streamline corporate payments with low-cost internal transfers, dividend distributions and cross-border settlements. Mitsubishi Corporation will pilot the yen stablecoin across 240 subsidiaries, covering over 300,000 clients and reducing traditional banking delays.
Japan’s Financial Services Agency is finalizing regulatory approval for the yen stablecoin, following its authorization of JPYC’s stablecoin in late 2025, and is evaluating a USD-pegged version. Scalability plans include expansion to additional chains, signaling growing blockchain adoption and intensifying competition in Japan’s digital finance sector. Traders should note the new yen stablecoin launch may boost liquidity, cut settlement costs and set a precedent for bank-issued stablecoins.
Bullish
The launch of a bank-issued yen stablecoin is likely to have a bullish effect on the crypto market, particularly stablecoin liquidity and adoption. In the short term, traders may see increased volume and tighter spreads as corporate clients onboard the yen stablecoin for payments and settlements. Over the long term, regulatory approval by the FSA and multi-chain support will enhance market confidence, drive institutional engagement and set a precedent for similar initiatives. This growing infrastructure and clarity around bank-led digital assets should attract more capital into stablecoins and related blockchain services.