Japan: Three Megabanks Unite to Build a Shared Stablecoin Network
📋 En bref (TL;DR)
- 3 Japanese megabanks: MUFG, SMBC and Mizuho — $6.8 trillion in combined assets — launch a shared stablecoin network
- Progmat Coin: the neutral multi-chain platform (Ethereum, Polygon, Avalanche, Cosmos + R3 Corda) that will serve as shared infrastructure
- Yen and dollar stablecoins: the pilot simultaneously tests stablecoins pegged to JPY and USD for corporate payments
- 300,000 corporate clients: the three banks collectively reach 300,000 businesses in Japan, forming a massive distribution base
- First PIP initiative: the project is the first to receive “Payment Innovation Project” status from Japan’s Financial Services Agency (FSA)
- Pioneer regulatory framework: since June 2023, Japan has had one of the world’s first comprehensive frameworks for stablecoins
Japan’s three banking giants join forces
On March 5, 2026, Japan’s three largest banks announced the launch of a joint pilot for a payment network based on stablecoins. MUFG (Mitsubishi UFJ Financial Group), SMBC (Sumitomo Mitsui Banking Corporation) and Mizuho — which together manage approximately $6.8 trillion in assets — are simultaneously testing stablecoins pegged to the yen and the US dollar for corporate payments.
The pilot’s first industrial client is Mitsubishi Corporation, Japan’s largest trading house. The goal: to replace the correspondent banking chains and nostro accounts that make international payments slow and costly, with near-instant settlement on blockchain.
Progmat Coin: the neutral infrastructure
The network is built on Progmat Coin, a blockchain infrastructure initially incubated by MUFG in February 2022, then transformed into a neutral “utility” jointly owned by MUFG, Mizuho, SMBC, Japan Exchange Group (JPX) and SBI Holdings. This neutrality was essential: Mizuho and SMBC would not have built on MUFG’s proprietary infrastructure.
The architecture is multi-chain, supporting Ethereum, Polygon, Avalanche and Cosmos as public blockchains, combined with R3 Corda as the enterprise backbone. The stablecoins issued are classified as “Electronic Payment Instruments” (EPI) under Japanese payment services law — fiat-backed, redeemable at par, fully collateralized.
Project Pax: the bridge with SWIFT
In September 2024, the same three banks had launched Project Pax with Progmat and Datachain. This initiative integrates stablecoins into the existing SWIFT messaging system: banks instruct Progmat via SWIFT payment messages to settle transactions on blockchain networks.
A crucial detail: corporate clients never directly handle the stablecoins — the banks entirely manage the on-chain layer. The objective is to meet G20 targets for faster and cheaper cross-border payments, with 24/7 settlement.
Japan, pioneer of stablecoin regulation
Since June 2023, Japan has had one of the world’s first comprehensive regulatory frameworks for stablecoins. Amendments to the Payment Services Act (PSA) classify fiat-backed stablecoins as “Electronic Payment Instruments” and restrict their issuance to licensed banks, fund transfer service providers and trust companies.
In 2025, lawmakers strengthened this framework by allowing trust issuers to invest up to 50% of reserves in short-term government bonds — improving capital efficiency. The 2026 tax reform introduces a flat 20% rate on crypto gains, replacing the progressive system with marginal rates that could reach 55%.
A thriving stablecoin ecosystem
The megabanks’ pilot is part of a flourishing Japanese stablecoin ecosystem:
- JPYC: the first local yen stablecoin, with approximately $26.4M in on-chain supply — the largest local-currency stablecoin in Asia-Pacific
- JPYSC: a trust-based stablecoin issued by SBI Shinsei Trust Bank, expected in Q2 2026
- DCJPY: a tokenized bank deposit from Japan Post Bank, backed by 190 trillion yen (~$1.3 trillion) in deposits across 120 million accounts
Internationally, the race is intensifying. JPMorgan processes over $1 billion per day via JPM Coin. In Europe, the Qivalis consortium (10 banks including BNP Paribas) is preparing a euro stablecoin for H2 2026. The global stablecoin market surpassed $300 billion in 2025.
📚 Glossary
- Stablecoin: A cryptocurrency whose value is pegged to a stable asset (dollar, euro, yen), used for transactions and as a safe haven in crypto markets.
- Blockchain: A decentralized, immutable digital ledger that records all transactions in a transparent and secure manner.
- Progmat Coin: A neutral blockchain infrastructure developed in Japan, supporting the issuance and management of regulated stablecoins across multiple networks (Ethereum, Polygon, Avalanche).
- SWIFT: The global interbank network used by more than 11,000 financial institutions for international transfers. Project Pax integrates stablecoins into this network.
- Qivalis: A consortium of 10 European banks (including BNP Paribas, ING, UniCredit) developing a euro stablecoin compliant with the MiCA regulation.
Frequently asked questions
Why are Japan’s three largest banks launching a shared stablecoin network?
MUFG, SMBC and Mizuho want to replace traditional correspondent banking circuits with near-instant blockchain settlement. Their shared Progmat Coin network will reach 300,000 corporate clients in Japan.
How does the Japanese megabanks’ stablecoin work?
Progmat Coin is a multi-chain platform (Ethereum, Polygon, Avalanche, Cosmos) that issues stablecoins classified as Electronic Payment Instruments. They are fiat-backed, fully collateralized and redeemable at par.
Is Japan going to launch a central bank digital currency (CBDC)?
The Bank of Japan maintains a pilot program but currently has no plans to issue a CBDC. Bank stablecoins such as Progmat Coin effectively constitute the private alternative, actively supported by the FSA regulator.
How do corporate clients use these stablecoins?
Businesses do not interact directly with the blockchain. The banks manage the on-chain layer and integrate payments via SWIFT (Project Pax). The first client is Mitsubishi Corporation, Japan’s largest trading house.
What other countries are developing bank stablecoins?
JPMorgan processes over $1 billion per day via JPM Coin. In Europe, 10 banks have joined forces in the Qivalis consortium for a euro stablecoin. In the United States, 5 major banks are exploring a shared stablecoin.
📰 Sources
This article is based on the following sources:
- The Block – Japan’s Big Banks Join Forces on Stablecoins to Speed Corporate Payments (March 5, 2026)
- ETHNews – Japan’s Three Biggest Banks Are Building a Shared Stablecoin (March 5, 2026)
- Ledger Insights – Japan’s Big 3 Banks to Use Stablecoins, SWIFT for Cross-Border Payments
- Finance Magnates – Japan’s Top Banks Team Up to Test Stablecoin Backed by National Regulator (March 5, 2026)
How to cite this article: Fibo Crypto. (2026). Japan: Three Megabanks Unite to Build a Shared Stablecoin Network. Retrieved March 7, 2026 from https://fibo-crypto.fr
