Bank of Japan Deputy Governor, in a moment of profound insight, addresses the importance of adapting to the ever-changing financial climate, particularly with the emergence of stablecoins in the global economy. 🌍💸
Are banks growing bullish on stablecoin? Probably Not, But Let’s Pretend 🤯
Even before the Bank of Japan expressed support towards stablecoins, a number of major banking institutions have started making moves to issue yen-pegged stablecoins to compete with the dominance of the U.S dollar. Because nothing says “competition” like three banks teaming up to create a currency that’s just a fancy digital version of a yen. 🎯
Earlier this month, three of the largest Japanese financial institutions have teamed up with plans to launch a stablecoin pegged to the Japanese yen. The collaboration involves Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group (SMBC), and Mizuho Financial Group. Because nothing says “collaboration” like three banks agreeing to work together… until they don’t. 🤝
In addition, the joint-venture would also aim to create a single platform for stablecoin payments. The platform would serve to streamline settlement processes and lower costs for businesses by enabling smoother, cross-border transactions. The stablecoin issuance and governance for the project would be managed by MUFG’s blockchain infrastructure Progmat. Because nothing says “trust” like a blockchain managed by a bank that’s still figuring out how to balance a checkbook. 📉
One of the banks involved in the project, SMBC, has also made plans to launch a stablecoin backed by crypto projects Avalanche and Fireblocks. The partnership aims to conduct trials for the new stablecoin project in the fourth quarter of 2025 or early 2026. Because nothing says “innovation” like a stablecoin backed by a blockchain that’s already had a few “minor” security issues. 🔐
In August 2025, Japanese financial services company Monex Group expressed an interest in launching a yen-pegged stablecoin. However, no concrete plans have been made as of late aside from plans to back the assets using Japanese government bonds. Because nothing says “concrete” like a plan that’s 100% dependent on the government not defaulting. 🏦
On the other hand, Japan’s FSA has previously approved the first yen-pegged stablecoin issued by fintech startup JPYC. The stablecoin, dubbed JPYC, is expected to make its roll-out the first official digital currency tied to the local currency. Because nothing says “official” like a digital currency that’s still figuring out how to handle a simple transaction. 💸
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2025-10-21 10:39