Japan's major banks, Mitsubishi UFJ Financial Group (MUFG), Mizuho, and Sumitomo Mitsui Banking Corporation (SMBC), in collaboration with Mitsubishi UFJ Trust and Banking Corporation and TISI Inc., have successfully completed their first joint test of a JPY stablecoin. The closed-door pilot project, overseen by Japan's Financial Services Agency (FSA), tested cross-border settlements for trading giant Mitsubishi Corporation. These stablecoins, issued in the form of "trust beneficiary rights," completed their entire cycle from issuance to final redemption into fiat currency without any glitches. The system is slated for commercial release by the end of the current fiscal year.

Although Ripple is not mentioned in the official documents, U.Today's analysis suggests that given the long-standing and deep integration history of these three major banks with Ripple's technology, this test is inevitably seen as related to the XRP Ledger (XRPL) ecosystem. The analysis points out that large banks may be attempting to build an isolated alternative through the Progmat platform (created by MUFG based on the Avalanche blockchain) to maintain full control over compliance and fees within the traditional banking system, while XRP may retain its dominance in cross-border retail and open fintech services.