Japan's three megabanks Mizuho, MUFG and SMBC have successfully completed a joint yen stablecoin pilot for cross-border payments, marking a significant milestone in digital currency development. According to reports from CoinDesk, the banks announced on October 16, 2026 that they completed the pilot conducted in July 2026, with the test period running from July 17-23, 2026. The pilot involved three major Japanese megabanks and two partners, with the banks issuing one shared yen token that was tested end-to-end across the entire process. The Financial Services Agency-backed project was selected in November 2025 under its FinTech PoC Hub and Payment Innovation Project, demonstrating official government support for digital currency initiatives.
The pilot demonstrated comprehensive cross-border settlement capabilities, with the main use case involving cross-border settlement between Japanese headquarters and the overseas offices of Mitsubishi Corporation. As reported by CoinDesk, the tokens were issued under Japan's Payment Services Act, with the three banks acting as joint settlors and Mitsubishi UFJ Trust and Banking acting as trustee. Technology firm TISI Inc. joined as the technology provider, while SMBC provided the blockchain platform that TISI built. The circulation was limited to KYC-verified users at participating banks with no cap, and bank deposits backed the tokens. The pilot verified the full cycle including issuance, transfer, and redemption, with participants gaining practical insight into systems and operations while covering compliance measures for anti-money laundering and counter-terrorist financing.
South Korea's KB Kookmin Card has signed a four-party agreement with Japan's SBI Holdings and two security companies to test AI identity verification and explore stablecoin payments between the two countries. According to reports from KB Kookmin Card, the memorandum of understanding (MOU) involves SBI Holdings, South Korean cybersecurity company Everspin and their joint venture, SBI Everspin. The partnership will examine how AI agents can securely access financial services and complete authorized transactions on behalf of users, with the companies planning to explore digital asset payments that could allow Japanese tourists to spend stablecoins at participating South Korean merchants. As reported by BigGo Finance, the core focus of the agreement is to establish a security framework that verifies the identity and delegated authority of AI agents in environments where they perform financial tasks such as payments on behalf of users, and to assess the commercial viability of cross-border digital payment services built on this framework.
At the center of the partnership is KYA Trust Gateway, a security platform designed to establish the identity and permissions of AI agents. As reported by KB Kookmin Card, the technology was conceived by SBI Everspin, which is developing the system with Everspin. Unlike traditional user authentication, the proposed process checks whether an AI agent has received permission from a specific person to perform designated tasks. The KYA Trust Gateway is an AI agent trust and security platform that goes beyond simply identifying who an AI agent is—it verifies which user has delegated authority to the agent and what services and transactions it is permitted to perform. The partners intend to use these checks before allowing automated systems to perform financial activities, with the companies examining how AI agents operating from Japan can authenticate themselves when accessing South Korean services during initial testing. The initial validation phase will verify identity authentication procedures when Japanese AI agents access South Korean services, with the scope subsequently expanding to include functions that confirm and manage the scope of tasks delegated by users and access permissions for individual services.
The successful completion of Japan's megabank pilot provides a workable template for banks exploring digital money, with real transactions targeted for fiscal 2026 running from April 2026 to March 2027. As reported by CoinDesk, the banks announced a joint council in June to study governance and operations, indicating continued collaboration on digital currency initiatives. SBI Holdings has launched JPYSC, a yen-denominated stablecoin in June 2026, while KB Kookmin Card introduced plans for a hybrid credit card system connecting stablecoin wallets with conventional card payments in March 2026. The Japanese megabank pilot's results confirmed the safety, reliability, and operational viability of joint issuance, with live transactions remaining the next milestone for the project. Cross-border card payments typically involve currency conversion, foreign transaction fees, and several intermediaries taking cuts, while crypto rails, particularly stablecoins, promise to shrink this chain significantly by reducing intermediary costs.
