Japan's largest banks to jointly issue stablecoins by March 2027

TOKYO, June 10 (Reuters) - ‌Japan's three ​largest ​banks said on Wednesday they will jointly issue stablecoins during the current fiscal ‌year ending in March 2027, a sign of ⁠growing momentum for digital payments in a country where ‌cash and credit cards ‌remain popular.

The banking arms of Japan's three largest financial groups - Mitsubishi UFJ Financial Group, Sumitomo ​Mitsui Financial Group and Mizuho Financial Group - will set up a council to examine operational ⁠frameworks and prepare for the issuance, they said in a statement.

Japan's ​Financial Services Agency has been supporting the experimental stage of the project as part ​of the country's efforts to ‌use blockchain technology to enhance payment systems.

Stablecoins have been strongly backed by ⁠U.S. President Donald Trump and interest has been growing globally, but some policymakers have expressed concern that they ⁠could facilitate the flow of funds outside regulated banking ​systems.

Japanese startup JPYC began issuing stablecoins pegged to the yen in October last year in a sign of small ‌but steady change in a country where cash and credit cards remain dominant ‌means of payment.

In a proposal this month, a ⁠ruling party panel ‌also called for ​promoting usage of yen-based stablecoins for settlement in Asia.

(Reporting by Leika KiharaEditing by Shri ‌Navaratnam)

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