Japan launches its first PIP payment project support! Three major banks collaborate to test stablecoin Compliance.

To promote innovation in financial technology (FinTech) and alleviate industry concerns regarding the lack of empirical experimentation, Japan's Financial Services Agency (FSA) established the “FinTech Experimentation Center” (FinTech Hub) in 2017. Now, with the rapid development of payment technologies such as Blockchain and stablecoins, the center is launching a new “Payment Innovation Project (PIP)” on November 7, 2025, focusing on innovative experiments in the digital payment field. The first PIP-supported case has been officially confirmed, with Japan's three major banks collaborating with several large enterprises to conduct compliance testing related to stablecoin issuance.

The first PIP project is unveiled: a feasibility test for the joint issuance of stablecoins.

The experiment was jointly applied for and selected by the following six companies:

Mizuho Bank, Ltd.

Mitsubishi UFJ Bank, Ltd.

Sumitomo Mitsui Banking Corporation

Mitsubishi Corporation

Mitsubishi UFJ Trust and Banking Corporation

Progmat, Inc.

The experiment will verify whether it is possible to legally and properly meet the current laws and practical requirements of Japan based on different service designs when multiple banking groups jointly issue “stablecoins” (electronic payment methods). This move is seen as an important step for Japan's financial regulatory authorities in actively exploring a compliance framework for digital currency.

Experiment Duration and Objectives: Long-term observation, focusing on compliance and user protection

This experiment will start in November 2025 and will continue until the “appropriate time”. During this period, we will observe how participating banks adjust their service structures to comply with regulations, and examine whether there are sufficient protective measures for general users. It is expected that after the experiment concludes, the Financial Bureau will publish detailed results on its official website, including:

Interpretation of laws and compliance challenges

Regulatory Response Focus

Practical considerations when providing services to general users

Financial Bureau Evaluation Criteria: Five Key Indicators Determine Support or Not

The Financial Bureau pointed out that the support decision this time was reviewed based on the following five criteria:

Clarity: The content of the experiment is clear and specific regarding legal issues.

Social significance: The experimental results are expected to enhance the convenience for domestic users and the productivity of enterprises.

Innovation: The service has forward-looking and technological breakthrough potential.

User Protection: If it involves general user participation, the applicant must provide sufficient information and protection mechanisms.

Feasibility: Sufficient funds, manpower, and resources are available to complete the experiment.

These standards ensure that FinTech pilot experiments not only pursue technological innovation but also take into account user rights and social benefits.

This case is the 11th support project since the establishment of the “FinTech Proof of Concept Center” and also the first project after the launch of the PIP (Payment Intensification Project). The Financial Bureau stated that in the future, it will continue to solicit innovative and socially valuable proof of concept projects through the PIP project, and will publicly disclose relevant information after each support decision to promote transparency and healthy development of the FinTech industry in Japan.

This article discusses Japan launching its first PIP payment project support! Three major banks join hands to test the compliance of stablecoins, first appearing in Blockchain news ABMedia.