Three of Japan’s largest banks – Mitsubishi UFJ Bank, Sumitomo Mitsui, and Mizuho – are teaming up to launch stablecoins pegged to the yen and US dollar to compete with USDT and USDC. The yen-backed stablecoin will be used for settlements by Mitsubishi Corporation initially.

The goal of the three megabanks is to drive stablecoin adoption across Japan, serving over 300,000 major business partners. They plan to establish a structure for corporate clients to transfer stablecoins with uniform standards, starting with a yen-pegged coin and potentially a dollar-pegged one in the future.

Progmat, a blockchain infrastructure company established by MUFG, will manage the issuance and governance of the new stablecoin, ensuring legal and operational compliance. The banks have also partnered with Bitbank, Avalabs, and Fireblocks to support the initiative.

The banks aim to issue 1 trillion yen worth of JPYC over the next three years, equivalent to about $6.64 billion. This move aligns with the global rise of stablecoins, with USDC and USDT currently dominating the market. Japan has revised its legal framework to challenge the dominance of dollar-backed stablecoins by allowing only approved stablecoins to operate.

Japan’s growing crypto adoption has seen a significant increase over the past year, with on-chain value received doubling. The country has shown strong growth in on-chain activity, particularly in trading of JPY stablecoins like XRP, BTC, and ETH. The rise in stablecoin usage suggests a shift towards real-world utility and partnerships within the crypto sector.

Read more at Yahoo Finance: Japanese Banking Giants Enter Stablecoins, Challenge USDT and USDC Dominance