Japan’s largest banks are collaborating to issue a yen-pegged stablecoin using MUFG’s Progmat platform to streamline corporate settlements, reduce cross-border fees and enable interoperable tokenized payments across companies—targeted rollout before year-end and built for bank-backed custody and regulatory compliance.
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Bank-backed yen stablecoin to standardize corporate payments
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Built on MUFG’s Progmat platform to operate across Ethereum, Polygon, Avalanche and Cosmos
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Targets more than 300,000 corporate clients and aims to cut international transfer costs
yen-pegged stablecoin: Japan banks launch a bank-backed yen stablecoin via MUFG’s Progmat to modernize corporate settlements — read the COINOTAG report for details.
Published: 2025-10-17 | Updated: 2025-10-17 | Author: COINOTAG
What is a yen-pegged stablecoin?
yen-pegged stablecoin refers to a digital token designed to maintain a stable value against the Japanese yen. These tokens are intended for payments and settlements, offering the speed and programmability of crypto with the price stability of a fiat peg, and in this case are being issued by major Japanese banks.
How will MUFG’s Progmat platform enable bank-backed yen stablecoins?
MUFG’s Progmat issuance platform is designed to let banks mint yen-pegged tokens on multiple public networks, including Ethereum, Polygon, Avalanche and Cosmos. The platform emphasizes interoperability, bank custody and compliance features so tokens issued by different banks can be standardized and used for intra- and inter-company settlements. According to Nikkei, MUFG, SMBC and Mizuho plan a consortium approach to ensure the token is widely accepted across corporate clients. Binance Japan general manager Takeshi Chino has said stablecoins play an important role in broader financial services and Web3 adoption.
Frequently Asked Questions
How will a bank-backed yen stablecoin affect corporate cash management in Japan?
Bank-backed yen stablecoins aim to reduce friction and fees in corporate cash management by enabling near-instant transfers and programmable settlement across subsidiaries and counterparties. The consortium of MUFG, SMBC and Mizuho targets interoperability to serve more than 300,000 corporate clients and streamline cross-border dividend, acquisition and customer payments within existing banking relationships.
Will Japanese regulators approve bank-issued stablecoins?
Japan’s Financial Services Agency (FSA) has been preparing guidance for yen-based stablecoins and institutional issuance. Regulatory approval remains a prerequisite; firms such as JPYC and Monex Group have engaged regulators and industry stakeholders as part of the broader market build-out.
Key Takeaways
- Consortium launch: MUFG, SMBC and Mizuho are coordinating to issue a yen-pegged stablecoin to standardize corporate settlements.
- Progmat integration: The stablecoin will be issued via MUFG’s Progmat platform and support multiple public blockchains for interoperability.
- Operational impact: Early corporate adopters, led by Mitsubishi Corporation, could see lower transaction costs and faster cross-border processes — monitor regulatory approvals and pilot outcomes.
Conclusion
Japan’s move toward a bank-backed yen-pegged stablecoin marks a significant step in tokenizing fiat for corporate payments. Using MUFG’s Progmat platform and a consortium of major banks, the initiative targets interoperability, regulatory compliance and a targeted rollout by year-end. Watch regulatory guidance from the Financial Services Agency and pilot results from Mitsubishi Corporation and other early adopters for the next phase of implementation. For ongoing coverage and analysis, follow COINOTAG updates.
Background and context
Reporters and market participants note several concurrent initiatives: MUFG launched the Progmat Coin issuance capability in June; Binance Japan explored Progmat-based issuance with Mitsubishi UFJ Trust and Banking Corporation (MUTB); and private firms such as JPYC and Monex Group have signaled interest in yen-pegged stablecoins. Sources referenced in reporting include Nikkei and statements from institutional participants. The consortium expects to leverage MUFG’s platform to enable bank custody and standardized token formats across public networks.
Expert perspectives
Industry leaders stress utility and infrastructure needs over speculative use. Binance Japan general manager Takeshi Chino commented that stablecoins are crucial for broader financial services and Web3 adoption. Monex Group leadership has publicly noted the operational and capital requirements associated with issuing bank-grade stablecoins, underscoring the collaboration model that banks may need to adopt.
Data and scope
Key figures reported: the banks involved serve in aggregate more than 300,000 corporate clients; Mitsubishi Corporation, cited as the first implementing entity, operates over 240 subsidiaries worldwide. MUFG has indicated Progmat will support multiple networks and may add more over time. Source mentions in coverage include Nikkei, MUFG, SMBC, Mizuho, Mitsubishi Corporation, Financial Services Agency, JPYC, Monex Group and Binance Japan (all referenced as plain text).
