The Financial Services Agency (FSA) of Japan has officially announced its support for a new stablecoin pilot project involving three of the country’s major banks. Mizuho Bank, MUFG, and SMBC are collaborating on this initiative aiming to reshape Japan’s digital payment infrastructure. The pilot will explore the regulatory compliance and operational feasibility of categorizing stablecoins as “electronic payment instruments.”
Collaboration in Cryptocurrency Infrastructure
According to the FSA, the project is being conducted by a broad consortium, including Mitsubishi Corporation, Progmat Inc., and Mitsubishi UFJ Trust and Banking Corporation. This initiative will test the potential for different banking groups to jointly issue stablecoins. The FSA seeks to verify whether the system can operate legally and correctly within the existing financial regulations.
The project is set to commence in November 2025 and will continue indefinitely. Findings and compliance reports from the pilot will be publicly shared on the FSA’s official website. The insights gained could establish new standards within Japan’s digital financial ecosystem.
A New Era in Payment Ecosystems
This initiative marks the inaugural project of the FSA’s “Payment Innovation Project” (PIP), a special initiative under the umbrella of the “FinTech Proof-of-Concept Hub,” which has supported fintech experiments since 2017. PIP is dedicated to accelerating blockchain-based payment solutions and enhancing digital transactions within corporate networks.
Details previously reported by Nikkei becoming official indicate that Japan’s digital finance transformation has entered the implementation phase. Under the FSA’s leadership, this joint venture could initiate a new era of secure, fast, and cost-effective transactions within the country’s payment infrastructure.


