Key Announcement
Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group (SMBC), and Mizuho Financial Group are jointly issuing a stablecoin pegged to the Japanese yen and US dollar, launching by year-end 2025.
Japan’s banking sector is making a decisive move into digital currency. Three of the nation’s largest financial institutions have announced a groundbreaking collaboration that could reshape how corporations conduct international business. This historic partnership represents a turning point where traditional banking infrastructure meets blockchain technology, creating a regulated pathway for digital payments that bridges the gap between legacy systems and modern financial innovation.
A Market-Defining Alliance
The consortium collectively serves more than 300,000 corporate clients across Japan, positioning this initiative to have immediate, widespread impact on the business community. By standardizing digital token issuance across three major banking networks, they’re creating a unified payment infrastructure that could eliminate costly intermediaries and accelerate settlement times from days to minutes.
This isn’t a casual partnership—it’s a strategic alliance born from necessity. The three banks collectively control approximately 40% of Japan’s banking assets, making their joint stablecoin initiative a market-defining event. Mitsubishi Corporation will become the first company to use the stablecoin for settling payments across its 240+ global subsidiaries, providing real-world validation before broader rollout.
Practical Benefits for Businesses
The practical benefits for businesses are substantial and immediate. International payments for dividends, acquisitions, and customer transactions currently involve multiple intermediaries, currency conversions, and processing delays that can span several business days. With blockchain-based stablecoins, these payments can settle in minutes rather than days, eliminating duplicate currency conversion fees when dealing with multiple countries. The 24/7 operation means payments aren’t held up by banking hours or holidays.
✓ Network Effect Advantage
As more of the 300,000+ business clients adopt the system, the value increases for everyone using it. Companies can make payments to any business partner whose bank participates, creating a unified digital payment network across Japan’s corporate sector.
The Progmat Platform Infrastructure
The stablecoin will run on MUFG’s Progmat platform, a blockchain system specifically engineered for regulated financial institutions. MUFG announced Progmat Coin in June 2023, creating infrastructure that allows banks to issue digital tokens on multiple public blockchains including Ethereum, Polygon, Avalanche, and Cosmos. This multi-chain approach ensures flexibility and prevents vendor lock-in.
Unlike typical cryptocurrency platforms, Progmat emphasizes bank custody, regulatory compliance, and standardization—the three pillars that distinguish institutional-grade blockchain infrastructure from consumer crypto applications. Different banks can issue tokens that work together seamlessly for corporate payments, creating genuine interoperability. The platform meets strict requirements from Japan’s Financial Services Agency, which oversees all stablecoin issuance in the country.
Comparing Payment Systems
| Feature | Progmat Stablecoin | Traditional Banking | Consumer Crypto |
|---|---|---|---|
| Settlement Speed | Minutes | 2-5 Days | Minutes-Hours |
| Operating Hours | 24/7 | Business Hours Only | 24/7 |
| Regulatory Compliance | Full FSA Oversight | Full FSA Oversight | Variable/Limited |
| Custody | Bank-Held | Bank-Held | Self-Custody |
