Mizuho Bank, Mitsubishi UFJ Bank, and Sumitomo Mitsui Banking Complete Cross-Border Payment Trial Using Jointly Issued Stablecoin Mizuho Bank, Mitsubishi UFJ Bank, and Sumitomo Mitsui Banking have completed a cross-border payment trial using a jointly issued stablecoin, simulating real-world transactions and testing the entire operational process. The three Japanese megabanks have concluded a cross-border payment trial using a jointly issued stablecoin, as a step toward validating the practical application of this digital currency in real transactions. According to CoinPost, on October 16, Mizuho Bank, Mitsubishi UFJ Bank, Sumitomo Mitsui Banking, along with Mitsubishi UFJ Trust and Banking and TISI, announced that they conducted the trial between July 17 and July 23. During the trial, the parties simulated transactions between a Japanese legal entity and its overseas affiliate of Mitsubishi Corporation, reviewing the full process from stablecoin issuance, transfer, to redemption. The primary focus was assessing whether the stablecoin jointly issued by the three banks could operate stably within an actual payment workflow. This project falls under the “Fintech Demonstration Hub – Payment Advancement Project (PIP),” selected by Japan’s Financial Services Agency in November 2025. Previously, on June 10, the three banks announced their intention to implement jointly issued stablecoins in real transactions during the fiscal year 2026 and established a council to discuss operations and governance. Regarding issuance structure, the three banks serve as co-trustees, while Mitsubishi UFJ Trust and Banking acts as the trustee under a trust agreement model. The stablecoin is issued as a “specific beneficial interest” under Article 2, Paragraph 9 of the Payment Services Act. Under this law, such assets are classified as “electronic payment instruments,” thus subject to different legal treatment than cryptocurrencies. A key testing focus was the operational model required when multiple banks participate jointly as trustees to issue a single stablecoin. The three banks reviewed compliance requirements embedded in service design, while Mitsubishi UFJ Trust and Banking examined implementation aspects such as user protection measures. In terms of fund transfers, the parties also simulated multiple usage scenarios to evaluate anti-money laundering, counter-terrorist financing protocols, and system efficiency. The implementation team also proposed design directions for real-world transactions. Under the current proposal, underlying assets will be deposits; stablecoins will circulate only among users who have completed bank identity verification, focusing on payment and remittance needs. However, this approach remains at the conceptual stage and may change. Meanwhile, financial institutions within the three megabank group are also testing on-chain financial models. On February 13, the group announced a trial involving traditional asset transactions and rights transfer. On September 29, they further disclosed a commercial payment trial on the TradeWaltz platform. By Hyunwoo Choo