Japan’s first digital-only bank, Minna Bank, initiated a pilot program Thursday exploring the use of stablecoins and digital wallets to support everyday financial services and payments, according to a statement shared with Decrypt.

The initiative involves a joint study with Fireblocks, Solana Japan, and Japanese tech firm TIS. The study aims to assess the practical applications of stablecoins and decentralized wallets in real-world banking.

Focus Areas and Blockchain

The project will examine use cases including cross-border payments, real-world asset trading, and day-to-day digital payments. It will also evaluate the technical feasibility of issuing stablecoins on the Solana blockchain and explore how Web3 wallets can improve user experiences.

This pilot comes as stablecoins—crypto assets pegged to fiat currencies—gain increased global traction. Institutions seek alternatives offering faster and cheaper transactions than traditional systems.

Financial institutions are ramping up stablecoin efforts for purposes ranging from international settlements to tokenized deposits, with the market collectively topping $250 billion.

A recent CEX.IO survey found stablecoin usage for everyday financial activities is increasing, with 69% of 2,600 respondents using them more frequently than a year ago, citing lower fees compared to traditional options.

Japan’s Strategic Context

Japan is aligning with global trends, as seen with Hong Kong’s impending stablecoin rules and South Korea’s institutional initiatives. Major players like SMBC are also experimenting in this space.

Expert Perspectives on Stablecoins

Stephen Richardson, Head of Banking at Fireblocks, emphasized Japan’s specific needs: “There’s a bigger and heavier emphasis on things like corporate and transnational banking. Japan has a lot of trade, and trade is made more effective by the easy and efficient movement of money.”

He drew a comparison to transformative technologies: “Making money programmable is like creating smartphones or LLMs. The most successful applications will become invisible to the user, offering benefits only those who understand the underlying tech will notice.”

While enthusiasm stems from the potential for cheaper international transfers, some, like Airwallex CEO Jack Zhang, view stablecoins as potentially just the latest crypto trend. Still, inherent utility distinguishes them from previous hype cycles.

For nations like China, stablecoins also support foreign trade policies, aiming to reduce dollar dependency in international settlements.