According to the source, reports linking MUFG, SMFG, and Mizuho to bank-issued JPY stablecoins for commercial applications align with Japan’s 2023 revisions to the Payment Services Act that permit licensed banks and trust companies to issue yen-denominated stablecoins redeemable at par, subject to strict oversight (source: Japan Financial Services Agency, Payment Services Act amendments 2023). MUFG’s Mitsubishi UFJ Trust and Banking operates the Progmat Coin platform designed for deposit-backed stablecoin issuance across multiple blockchains, with documentation highlighting commercial settlement and enterprise use cases (source: MUFG, Progmat Coin materials 2022–2024). SMBC and Mizuho have participated in DeCurret DCP’s Digital Currency Forum on DCJPY, a deposit-backed digital currency for industrial settlement, with pilots and a stated commercialization roadmap in 2024 (source: DeCurret Digital Currency Forum and DCJPY public releases 2023–2024). For traders, regulated JPY stablecoins could deepen Asia-hour liquidity given that over 90% of crypto spot volume is against stablecoins, potentially diversifying away from USDT and USDC concentration risk (source: Kaiko Research 2023–2024; BIS Quarterly Review 2023). Monitor official issuance press releases from MUFG, SMFG, and Mizuho and exchange listing notices, as such announcements historically precede liquidity shifts and tighter basis on major pairs (source: bank and exchange disclosures; Kaiko liquidity reports).