Japan’s three megabanks plan stablecoin launch by next March
MUFG Bank, Sumitomo Mitsui Banking Corp. and Mizuho Bank will form a council as they prepare yen- and dollar-linked digital assets for securities settlement.
- Japan's three largest banks—MUFG Bank, Sumitomo Mitsui Banking Corp., and Mizuho Bank—are jointly planning to issue a stablecoin by March of the following year.
- The digital asset will be linked to currencies including the Japanese yen and the US dollar.
- The initial planned use for the stablecoin is to allow investors to settle purchases of stocks, bonds, and investment funds.
- The banks are forming a council to manage the operational framework, following successful experiments supported by Japan's Financial Services Agency.
Japan’s three megabank lenders are preparing to jointly issue a stablecoin linked to currencies including the yen and the US dollar during the year ending next March.
The plan, announced on Wednesday (10 June), involves MUFG Bank, Sumitomo Mitsui Banking Corp. and Mizuho Bank.
The lenders have also agreed to set up a council to examine the operational framework for the stablecoin and strengthen co-operation aimed at widening its use.
Since November last year, the three banks have been carrying out demonstration experiments on the joint issuance of the digital asset with support from the Financial Services Agency.
Drawing on those trial results, the banks plan to let investors use stablecoins to settle purchases of stocks, bonds and investment trust funds.
They will also look at broadening the range of financial institutions where the stablecoins can be used.
Stablecoins are blockchain-based digital payment instruments.
They are expected to make international remittances and payments easier while lowering transaction costs.
[Copyright The Jiji Press, Ltd.]
