Tokyo Kiraboshi Financial Group, Minna no Bank and The Shikoku Bank intend to test stablecoins based on the Japan Open Chain blockchain.
According to CoinDesk, the financial institutions will use an infrastructure solution from GU Technologies in the experiment.
The press release reads:
"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."
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Following the collapse of the Terra ecosystem last year, the Japanese authorities adopted a series of restrictive measures against stablecoins in order to protect investors. However, the government plans to allow the listing of "stablecoins" issued outside the country on local platforms.
The new rules, which will be introduced in June this year, will allow local platforms to apply for a special license to offer stablecoins.