Japan's largest banks to jointly issue stablecoins by March 2027
Japan's largest banks to jointly issue stablecoins by March 2027 TOKYO, June 10 (Reuters) - Japan's three largest banks said on Wednesday they will jointly issue stablecoins during the current fiscal year ending in March 2027, a sign of growing momentum for digital payments in a country where cash and credit cards remain popular.
The banking arms of Japan's three largest financial groups - Mitsubishi UFJ Financial Group 8306.T, Sumitomo Mitsui Financial Group 8316.T and Mizuho Financial Group 8411.T - will set up a council to examine operational frameworks and prepare for the issuance, they said in a statement.
Japan's Financial Services Agency has been supporting the experimental stage of the project as part of the country's efforts to use blockchain technology to enhance payment systems.
Stablecoins have been strongly backed by U.S. President Donald Trump and interest has been growing globally, but some policymakers have expressed concern that they could facilitate the flow of funds outside regulated banking systems.
Japanese startup JPYC began issuing stablecoins pegged to the yen in October last year in a sign of small but steady change in a country where cash and credit cards remain dominant means of payment.
In a proposal this month, a ruling party panel also called for promoting usage of yen-based stablecoins for settlement in Asia.
(Reporting by Leika Kihara
Editing by Shri Navaratnam)((leika.kihara@thomsonreuters.com; +813-6441-1828; Reuters Messaging: leika.kihara.reuters.com@reuters.net))
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