Today MUFG confirmed that Japan’s three largest banks, MUFG, SMBC and Mizuho will launch a joint stablecoin by the end of March 2027. The three banks first started exploring stablecoins together in 2024 as part of Project Pax, with Japan’s Financial Services Agency (FSA) classifying the initiative as a “Payment Innovation Project” (PIP) late last year.
Around the same time they also started a project exploring stablecoins for securities settlement with Nomura and Daiwa Securities, at which point it was dubbed the “3 Mega SC” project. Previously Project Pax explored cross border payments, especially with South Korea.
Today’s brief announcement stated that live transactions would be performed this financial year (which ends March 2027), and a council will be created to govern the project and establish an operational framework. The joint stablecoin will be managed by a single trust company, but it looks like the choice of company has not yet been settled.
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