Japan's three largest banks, MUFG, Sumitomo Mitsui, and Mizuho, are set to introduce a Yen-pegged stablecoin aimed at modernizing payment systems. This initiative, reported on October 18, 2025, seeks to improve value transfer among corporate clients and may extend to a U.S. dollar-pegged stablecoin for international transactions. The stablecoin will likely utilize an interoperable infrastructure, potentially leveraging MUFG’s Progmat platform. This development follows Japan's 2023 regulatory framework, which allows only licensed banks and financial institutions to issue fiat-backed stablecoins.