The Japan Financial Services Agency (FSA) has approved a pilot program for stablecoins to be issued by major banks. The initiative, part of the Payment Innovation Project (PIP), is focused on testing how banks can issue yen-backed stablecoins under Japanese financial laws. Mizuho Bank, MUFG, and SMBC will participate alongside Mitsubishi Corporation, Progmat Inc., and Mitsubishi UFJ Trust and Banking Corporation. This project aims to explore legal and operational aspects of stablecoin issuance, focusing on compliance with existing regulations. The pilot will assess the feasibility of implementing stablecoins within current regulatory frameworks while evaluating data management, security protocols, and operational efficiency. 2025 marks the start of this pioneering initiative, designed to lay the groundwork for a more robust and innovative digital payment ecosystem in Japan.