Japanese Banks, Backed by Regulator, to Test Joint Digital Currency

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In a significant step for payment innovation, Japan‘s top financial regulator is throwing its weight behind a collaborative stablecoin project.

The “big three” banks—Mizuho, MUFG, and SMBC—are joining forces with key corporate partners to pilot a jointly-issued stablecoin designed for seamless payments.

Supported by the FSA’s new Payment Innovation Project (PIP), this experiment will verify the legal and operational framework for such a digital currency.

Starting in November 2025, the project aims to create a compliant and efficient payment system, with findings to be shared publicly to guide future financial innovation in Japan.