The Financial Services Agency of Japan supports the stablecoin plan launched jointly by the country's major banks

According to Cointelegraph, the Financial Services Agency (FSA) of Japan has approved a joint issuance of a yen-backed stablecoin project by several of the country's largest financial institutions.

In a statement released on Friday, the FSA announced the launch of the "Payment Innovation Project" to address the progress made in "enhancing payment efficiency using blockchain technology." The initiative involves Mizuho Bank, MUFG Bank, Sumitomo Mitsui Banking Corporation, Mitsubishi Corporation and its financial division, as well as the stablecoin issuance platform Progmat from MUFG Bank. The regulator noted that starting this month, these companies will begin issuing payment stablecoins. The plan aims to enhance user convenience, improve productivity for Japanese businesses, and innovate the local financial landscape. After the pilot project is completed, the FSA plans to announce the results and conclusions.