Japanese banks report completed joint stablecoin payment trial

MUFG Bank, Mizuho Bank and SMBC have reported completing a joint stablecoin test built around a cross-border payment scenario for Mitsubishi Corporation. The results were disclosed on 16 October; the trial itself ran from 17 to 23 July. It examined the operating chain for a proposed commercial service.[1]

The assumed design uses trust-based stablecoins backed by assets invested in bank deposits, with circulation among users whose identities the banks have verified. The October release makes clear that this design remains subject to change.[1]

Mitsubishi UFJ Trust and Banking performed the agent-trustee work, including trust-asset management and issuance and redemption. SMBC supplied the blockchain platform built by technology company TISI, which also connected the wallet infrastructure and issuance system.[1]

The commercial framework was outlined separately in June. The three banks proposed acting as joint settlors under a trust agreement, with a trust bank or another institution serving as trustee. Joint issuance would therefore draw on several banks’ customer relationships while using a common trust arrangement.[2]

The June memorandum set out plans for a voluntary council to study the issuance infrastructure, systems, scheme and governance. Its proposed remit includes collaboration with other financial institutions and stakeholders. That governance work matters because a shared instrument requires participating banks to agree how the common service is operated and changed.[2]

The participants say the trial confirmed operational feasibility and system reliability, including checks around anti-money-laundering controls. Those are their reported test results; the release provides no transaction volumes or measured cost savings.[1]

The banks’ June objective was to use the jointly issued stablecoin in actual commercial transactions during financial year 2026. That remains the stated commercial target, following the completed technical and operational trial.[2]

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