TOKYO – Three Japanese banks will launch a prototype stablecoin in compliance with Japanese law on the Japan Open Chain blockchain, a Thursday press release stated. 

In partnership with web3 infrastructure provider GU Technologies, Minna no Bank, Tokyo Kiraboshi Financial Group, and Shikoku Bank will each develop their own Ethereum-based stablecoin. The experiment will test the viability of bank-issued stablecoins in compliance with Japan’s Payment Services Act.

“We will conduct an experiment to confirm that each bank can issue its own stablecoin that can be used in Ethereum wallets such as MetaMask while complying with the Payment Services Act,” the banks stated.