Japan's three largest banks said on June 8 that they will jointly issue a stablecoin in the current fiscal year (ending March 2027) to facilitate stock and investment fund transactions at selected securities companies.
According to the announcement, the stablecoin will be issued by a consortium of the three banks, aiming to create a stable digital payment method pegged to the Japanese yen. The goal is to reduce price volatility risks compared to other cryptocurrencies while increasing speed and efficiency in securities trades.
The stablecoin will be used to settle purchases and sales of stocks and investment funds at partner securities firms. This represents the first step by major Japanese banks to apply blockchain technology to traditional securities markets.
The project is expected to undergo limited trials before expanding across the broader market. The banks anticipate the stablecoin will simplify settlement processes, reduce intermediary costs, and enhance transaction transparency.
