Main Points：
- Development Milestone: Mitsubishi UFJ Trust Bank has completed development of a yen-linked stablecoin in collaboration with its digital platform subsidiary, Progmat, as reported by Yomiuri Shimbun on April 2, 2025.
- First Issuance as an “Electronic Payment Instrument”: This stablecoin is expected to be the first issued as an “electronic payment instrument” under Japan’s revised Payment Services Act.
- Initial Use and Future Plans: Initially planned for use in carbon credit trading, the stablecoin may later be expanded for trade settlement purposes.
- Industry Competition: JPYC is also nearing the final stages of obtaining a funds transfer license, with plans to launch a yen-linked stablecoin as early as this summer.
- Advantages Highlighted: President Hiroshi Kubota of Mitsubishi UFJ Trust Bank lauds the system for its low cost and fast transaction speed, which could dramatically reduce fees compared to traditional cross-border payments.
- New Business Objectives: The bank aims to achieve a gross profit of 30 billion yen in new business areas such as stablecoins and startup collaborations by 2034, reinforcing its commitment to addressing social needs through innovation.
1. Pioneering a New Payment Infrastructure
Mitsubishi UFJ Trust Bank is finalizing plans to issue a yen-linked stablecoin that will be classified as an “electronic payment instrument” under the revised Payment Services Act. According to an interview with President Hiroshi Kubota published by Yomiuri Shimbun on April 2, the bank’s digital platform partner, Progmat, has completed system development at the end of last year. Initially targeted for carbon credit trading, the stablecoin is also expected to expand into trade settlement solutions in the future.
2. Collaboration and Development Progress
Working closely with Progmat, Mitsubishi UFJ Trust Bank has advanced its stablecoin project to the final stages of development. This yen-linked stablecoin is poised to become the first of its kind issued as an “electronic payment instrument” under current regulations. In parallel, industry players like JPYC are also in the final stages of securing funds transfer licenses, with expectations of launching their own yen-linked stablecoin services this summer. Kubota President described the system as “revolutionary” due to its low cost and fast transaction speed, which promises significant fee reductions compared to traditional cross-border payment systems that involve multiple banks.
3. Future Applications and Strategic Vision
Beyond its initial application in carbon credit trading, Mitsubishi UFJ Trust Bank is eyeing broader use cases such as international trade settlements. This initiative represents a major step toward creating a new payment infrastructure in Japan that leverages blockchain technology for secure and efficient digital transactions.
The bank is also positioning itself to explore new business areas in collaboration with stablecoin projects and startups. With an ambitious target of achieving a gross profit of 30 billion yen in these emerging fields by 2034, Mitsubishi UFJ Trust Bank is signaling its commitment to innovation and to solving social challenges through technology.
4. Countdown to a New Era in Digital Payments
Mitsubishi UFJ Trust Bank’s completion of its yen-linked stablecoin development marks a significant milestone in Japan’s digital financial evolution. As the first stablecoin poised for issuance as an “electronic payment instrument,” it is set to enhance domestic and international payment systems by reducing costs and speeding up transactions. With other industry players also advancing their own projects, Japan is on the cusp of a new era in stablecoin-based payment infrastructure. The countdown to this next phase of financial innovation has officially begun.
