Key Notes
- Japan’s top three banks will jointly issue yen- and dollar-pegged stablecoins.
- The move aims to create a unified structure for stablecoin transactions.
- Sony Bank seeks a US license to launch a dollar-backed stablecoin.
Japan’s biggest banks are joining forces to bring stablecoins into the country’s financial mainstream. According to Nikkei, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group will jointly issue digital currencies pegged to the yen and eventually, the US dollar.
A Unified Digital Payment System
The three banking giants plan to create a shared framework, allowing corporate clients to issue and transfer stablecoins using common standards. The first launch will feature a yen-pegged token, designed for fast and secure fund settlements between companies and banks.
A dollar-backed version is expected later, expanding cross-border payment options. With more than 300,000 corporate partners between them, the banks have the scale to drive adoption quickly.
Unlike traditional banknotes, stablecoins exist only in digital form, backed by equivalent reserves to keep their value stable. The joint move can be seen as a major digital asset adoption signal from traditional finance.
Sony Bank Joins the Race
Meanwhile, Sony Bank is taking its stablecoin ambitions abroad. Its US subsidiary, Connectia Trust, has applied for a national trust bank charter with the Office of the Comptroller of the Currency (OCC) to issue a dollar-pegged stablecoin in the American market.
The application comes after the GENIUS Act, signed by President Donald Trump in July, established a clear regulatory framework for stablecoins.
The stablecoin move comes alongside the Bank of Japan’s gradual tightening of monetary policy. Deputy Governor Shinichi Uchida recently suggested that rates, currently at 0.5%, could rise to 0.75% by early 2026, showing confidence in domestic growth.
While higher rates could strengthen the yen, a measured approach may improve global liquidity, potentially boosting digital assets like Bitcoin
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Pro-Crypto Prime Minister
Japan’s political landscape took a decisive turn as Sanae Takaichi was elected Prime Minister. Her policies favor low interest rates, tax cuts, and large-scale economic stimulus, all aimed at curbing yen weakness and stimulating growth.
Takaichi has supported cryptocurrency regulation and innovation, endorsing crypto donations to political candidates in 2019. Market participants expect a friendlier environment for digital assets. Analysts believe her leadership could reignite domestic crypto enthusiasm.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
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Source: https://www.coinspeaker.com/japan-banks-stablecoin-launch/
