INTERVIEW: Mitsubishi UFJ Trust to Issue Stablecoin in FY 2026

Tokyo, Feb. 13 (Jiji Press)–Mitsubishi UFJ Trust and Banking Corp. plans to issue a stablecoin, a type of digital asset, whose value is linked to legal tender, in fiscal 2026 starting in April, President and CEO Hiroshi Kubota said in a recent interview. The company expects the stablecoin to be initially used in cross-border settlements by companies. “We need to contribute substantially” to spread the use of yen-denominated stablecoins, Kubota said. The stablecoin to be issued by Mitsubishi UFJ Trust will be a Japan-specific “trust-type” token backed by government bonds and deposits held by a trust bank. If realized, it would mark the first such issuance in Japan. This type of stablecoin can be issued with smaller system investment and is planned to be used mainly for settlements between Japanese companies and their overseas units. Since more than 90 pct of stablecoins currently in circulation are dollar-denominated, Kubota noted that settlements in yen may be replaced by dollar-denominated stablecoins unless yen-denominated stablecoins are issued soon. “It would lead to a decline in Japan’s national and economic strength,” he warned. Kubota underlined the need for commercial banks to play a role in expanding the use of stablecoins in the country. Mitsubishi UFJ Trust has already been working with the country’s three megabank groups– Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc.–and trading house Mitsubishi Corp. on joint issuance of stablecoins and demonstration tests of cross-border settlements under a pilot project. END [Copyright The Jiji Press, Ltd.]