Japan's FSA to Support Country's 3 Largest Banks in Stablecoin Issuance

Japan's Financial Services Agency (FSA) will assist its three largest banks—Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group (SMBC), and Mizuho Financial Group—in creating a proof-of-concept for issuing a stablecoin as an electronic payment tool. The initiative comes amidst significant growth in stablecoins, which recently surpassed a $300 billion market cap. The venture is set to begin this month and aims to explore the joint issuance of the stablecoin. This development is part of a broader movement in Japan, where traditional financial institutions are engaging more with digital currencies. The launch of the JPYC stablecoin in October highlights this trend, as regulators and banks seek to integrate stablecoins into existing financial systems, responding to the growing demand for digital currencies.

Source 🔗