What happened
- Specific facts/numbers: SMBC, Mizuho Bank, MUFG Bank, Mitsubishi UFJ Trust and Banking, and TISI said they ran the proof-of-concept from July 17 to July 23, 2026, and announced the result on October 16, 2026.
- Institutions involved: The participants were Sumitomo Mitsui Banking Corporation, Mizuho Bank, MUFG Bank, Mitsubishi UFJ Trust and Banking Corporation, and TISI Inc.; Japan’s Financial Services Agency had previously approved support through its FinTech PoC Hub.
- Regulatory/technical context: The project tested joint stablecoin issuance and advanced cross-border payments, building on a November 2025 initiative backed by the FSA’s FinTech PoC Hub; related earlier disclosures said the structure under study involved trust-based issuance under Japan’s Payment Services Act framework.
- What to watch next: The banks had already said in June 2026 that they aimed to begin real transactions using the stablecoin during fiscal 2026 and to use a joint council to work on governance, scheme design, and issuance infrastructure.
Why it matters
The PoC suggests Japan’s largest banks are moving from exploratory stablecoin work toward operational cross-border settlement use cases, which could accelerate bank-led digital cash rails for wholesale and corporate payments.
HKMA Relevance
Direct: Another monetary authority’s supported payments-focused stablecoin pilot is a concrete action in an area within HKMA’s remit, namely cross-border payments and bank-linked stablecoin arrangements.
Story details
Sources
- Primary source: https://www.smbc.co.jp/news_e/pdf/e20261016_01.pdf
- Secondary source: https://www.finextra.com/pressarticle/111311/japanese-banks-complete-stablecoin-poc