Japanese Megabanks Complete First Joint Trial for Yen Stablecoin
Japan's three major banking groups—Mitsubishi UFJ Financial Group, Mizuho Bank, and Sumitomo Mitsui Banking Corporation—along with Mitsubishi UFJ Trust and TISI Inc., have finished their first joint trial of a yen-backed stablecoin. Supervised by the Financial Services Agency, the closed pilot tested cross-border payments for Mitsubishi Corporation. The digital tokens were issued as trust beneficiary rights and successfully converted back into fiat currency.
The stablecoin platform, known as Progmat, was created by MUFG on the Avalanche blockchain to handle intra-corporate transfers while maintaining strict oversight on compliance and transaction fees. Although the project operates independently of the XRP Ledger, all three megabanks have existing ties to Ripple technology. Mizuho and SMBC recently partnered with Ripple Labs for real-world asset tokenization and decentralized finance solutions on the XRP Ledger. The new yen stablecoin could serve conservative corporate transfers, while open networks like XRP handle broader fintech and retail liquidity.
A full commercial launch of the yen stablecoin system is targeted before the end of the current fiscal year. Following the announcement, XRP (BITSTAMP:XRPUSD) traded down 1.98% at $1.307. Investors will watch whether the commercial rollout impacts open cross-border digital asset settlement as institutional platforms expand.
Key points
- MUFG, Mizuho, and SMBC completed successful pilot tests for a joint yen stablecoin supervised by Japan's Financial Services Agency.
- The pilot processed cross-border trade settlements for Mitsubishi Corporation, testing full issuance through fiat redemption.
- A full commercial rollout of the digital yen on the Avalanche-based Progmat platform is scheduled before the end of the fiscal year.
- Japanese banks continue working with Ripple Labs on asset tokenization, creating a segmented market alongside private bank stablecoins.
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How we writeDisclaimerQuestions and answers
Which Japanese banks tested the new yen stablecoin?
Mitsubishi UFJ Financial Group, Mizuho Bank, and Sumitomo Mitsui Banking Corporation conducted the joint trials alongside Mitsubishi UFJ Trust and TISI Inc.
When will the Japanese yen stablecoin launch commercially?
The participating megabanks plan to commercially launch the yen stablecoin system before the end of the current fiscal year.
How does the new digital yen affect XRP?
The stablecoin on Progmat targets internal corporate transfers, while XRP and related platforms continue to serve open cross-border liquidity and fintech infrastructure.