Financial and Business News

Following New FSA Stablecoin Rules, Japan’s Banks Plan Yen Pegged Tokens

Friday, 17/10/2025 | 14:15 GMT by Tareq Sikder
  • Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho plan joint yen-backed stablecoin launch.
  • Banks could introduce a U.S. dollar-pegged stablecoin at a later stage.
The Japanese flag waving in the wind
Japanese Flag

Japan’s three largest banks – Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group – are planning to jointly issue stablecoins, according to a report by the Nikkei business daily on Friday (today).

Japan has been taking structured steps to regulate and expand the use of stablecoins. Earlier this year, the Financial Services Agency granted approval to SBI VC Trade to list Circle’s USDC, making it the first foreign dollar-backed stablecoin legally available in the country.

Digital assets meet tradfi in London at the fmls25

Yen Pegged Stablecoins Target Settlement Efficiency

The digital currencies will be pegged to real-world assets, starting with the Japanese yen. The banks are reportedly developing a shared framework that will allow corporate clients to transfer stablecoins between institutions under consistent technical and regulatory standards.

The initiative is aimed at improving settlement efficiency and supporting the adoption of blockchain -based payments within Japan’s financial system. The report added that a U.S. dollar-pegged stablecoin could be introduced later.

Japanese Investors Show Growing Interest in Digital Assets

Over half of Japanese institutional investors plan to invest in digital assets within the next three years, according to a survey by Nomura Holdings and its subsidiary Laser Digital.

The study, which polled over 500 investment managers from institutions, family offices, and public-service corporations, found that 54% intend to allocate funds to crypto assets. Many view digital assets as a diversification opportunity, with typical allocations of 2–5% of assets under management.

Interest also extends to Web3 projects. Barriers include volatility, counterparty risks, and regulatory concerns. The findings align with Japan’s ongoing push to support regulated digital asset innovation.

Japan’s three largest banks – Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group – are planning to jointly issue stablecoins, according to a report by the Nikkei business daily on Friday (today).

Japan has been taking structured steps to regulate and expand the use of stablecoins. Earlier this year, the Financial Services Agency granted approval to SBI VC Trade to list Circle’s USDC, making it the first foreign dollar-backed stablecoin legally available in the country.

Digital assets meet tradfi in London at the fmls25

Yen Pegged Stablecoins Target Settlement Efficiency

The digital currencies will be pegged to real-world assets, starting with the Japanese yen. The banks are reportedly developing a shared framework that will allow corporate clients to transfer stablecoins between institutions under consistent technical and regulatory standards.

The initiative is aimed at improving settlement efficiency and supporting the adoption of blockchain -based payments within Japan’s financial system. The report added that a U.S. dollar-pegged stablecoin could be introduced later.

Japanese Investors Show Growing Interest in Digital Assets

Over half of Japanese institutional investors plan to invest in digital assets within the next three years, according to a survey by Nomura Holdings and its subsidiary Laser Digital.

The study, which polled over 500 investment managers from institutions, family offices, and public-service corporations, found that 54% intend to allocate funds to crypto assets. Many view digital assets as a diversification opportunity, with typical allocations of 2–5% of assets under management.

Interest also extends to Web3 projects. Barriers include volatility, counterparty risks, and regulatory concerns. The findings align with Japan’s ongoing push to support regulated digital asset innovation.

Topics
crypto
stablecoin
stablecoins
Japan
About the Author: Tareq Sikder
Tareq Sikder
  • 2022 Articles
  • 34 Followers
A Forex technical analyst and writer who has been engaged in financial writing for 12 years.

More from the Author

CryptoCurrency

Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25

Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25

In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players. Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on. We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.

In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players. Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on. We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
More Videos

  • Executive Interview | Drew Niv | Chief Strategy Officer, ATFX Connect | FMLS:25

    Executive Interview | Drew Niv | Chief Strategy Officer, ATFX Connect | FMLS:25

    In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX. We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers. We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.

    In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX. We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers. We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.

  • Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25

    Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25

    In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity. Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe. A concise look at where compliance, onboarding, and AI-driven processes are heading next.

    In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity. Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe. A concise look at where compliance, onboarding, and AI-driven processes are heading next.

  • Executive Interview | Aydin Bonabi | Founder, Surveill | FMLS:25

    Executive Interview | Aydin Bonabi | Founder, Surveill | FMLS:25

    In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions. We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection. We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight. He closes with a clear message: fraud is scaling, and so must the tools that stop it.

    In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions. We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection. We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight. He closes with a clear message: fraud is scaling, and so must the tools that stop it.

  • Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town

    Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town

    Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/ #exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown

    Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/ #exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown