Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, and Mizuho Bank, the three biggest banks in Japan by assets, are working toward a shared fiat-pegged stablecoin launch targeted for fiscal 2026, according to Nikkei.

The three lenders are expected to finalize a basic agreement and create a council to oversee the project’s operational structure.

The initiative is part of an ongoing push into blockchain-based payments. MUFG has been active in tokenized assets and web3 initiatives, while SMBC is partnering with blockchain firms to build a compliant stablecoin payment infrastructure.

The banks have been testing the concept through a pilot program with the Financial Services Agency since November 2025.

As the initiative advances, the council will assess operational models, legal requirements, and market developments before moving toward full-scale trading and adoption.