MUFG Bank, Sumitomo Mitsuio Banking Corp and Mizuho Bank collectively serve more than 300,000 major corporate clients.
,Tokyo-based fintech Progmat will provide the infrastructure for the stablecoin that will be pegged to the Japanese yen.
,The launch is set for March, following proof-of-concept testing, with a US dollar stablecoin planned to follow.
,One of the three banks, Mitsubishi, will be the first major user and plans to intergate the stablecoin into its internal payment systems.
,The banks hope that greater use of stablecoins will provide more efficiency than current cross-border payment systems while also slashing costs and providing more options for collateral management.
,The stablecoin market is currently dominated by US dollar-led offerings.
,The first yen-denominated stablecoin is set to be launched this year after Tokyo-based startup JPYC secured regulatory approval to act as a funds transfer service provider.
,“We want people in the world to use Japanese yen through our stablecoin,” said Noritaka Okabe, JPYC’s CEO, when announcing the plans. JPYC aims to issue 1 trillion yen’s worth of the stablecoin over three years.
,Meanwhile in Europe, nine banks have joined forces to produce a euro-denominated stablecoin.
