Three Major Japanese Banks to Jointly Issue Stablecoins

Three major Japanese banks are moving forward with a joint issuance of stablecoins that are pegged to legal tender.

According to the Nihon Keizai Shimbun (Nikkei) and other sources on October 18, Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, and Mizuho Bank are discussing the issuance of stablecoins with standardized specifications.

They are currently considering stablecoins denominated in yen and plan to issue dollar-denominated stablecoins in the future as well. The issued coins will initially be used for internal fund settlements at Mitsubishi Corporation. Mitsubishi Corporation stated, "We are considering utilizing them for remittance purposes."

Utilizing stablecoins for remittance can reduce transaction fees. Nikkei reported that the push by major banks to issue stablecoins is also driven by concerns that U.S.-led dollar-pegged stablecoins could become widespread in Japan.