FSA Announces Stablecoin Pilot Program
Japan's Financial Services Agency (FSA) announced Friday its support for a stablecoin pilot program involving the country's three major banking institutions. Mizuho Bank, MUFG, and SMBC will jointly issue a stablecoin for payments under regulatory supervision.
The consortium also includes Mitsubishi Corporation, Progmat Inc., and Mitsubishi UFJ Trust and Banking Corporation. The FSA stated the experiment aims to examine how multiple banking groups can jointly issue stablecoins classified as electronic payment instruments under Japanese law.
The project will verify whether such systems can operate lawfully and appropriately in accordance with existing financial regulations. Regulatory compliance and proper operational practices remain central focuses throughout the pilot phase.
Payment Innovation Project Launched
The initiative will launch under the FSA's newly established Payment Innovation Project, a specialized program introduced Friday to accelerate blockchain-based payment innovations. The Payment Innovation Project (PIP) operates within the agency's existing FinTech Proof-of-Concept Hub, which has supported fintech experiments since 2017.
The project is expected to run from November 2025 onward for the foreseeable future. Results from the experiment, including legal and compliance insights, will be published on the FSA's website following completion.
Modernizing Financial Infrastructure
The FSA's announcement confirms details reported by Nikkei earlier this month. The collaboration represents a key step in modernizing Japan's financial infrastructure, enabling faster and more efficient digital transactions across institutional networks.
The megabank consortium's participation signals a significant institutional commitment to exploring blockchain technology for mainstream financial applications. Japan continues to advance its payment innovation efforts as global financial systems increasingly adopt digital asset infrastructure.