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

Japan's Financial Services Agency (FSA) is backing the country's three largest banks—MUFG, SMBC, and Mizuho Financial Group—in a project aimed at developing a proof-of-concept for a stablecoin. This initiative is intended to explore the joint issuance of a stablecoin to function as an electronic payment instrument. As stablecoins have gained substantial traction in the financial market, with a market cap exceeding $300 billion recently, Japan's major banks are collaborating with regulators to adapt stablecoin technology into existing financial frameworks. The project is set to begin this month and is expected to run for an indefinite period, reflecting the trend among traditional financial institutions in Japan to innovate and integrate digital asset frameworks in response to evolving market demands.

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