The State Of Stablecoin In Japan
Summary
Japan's stablecoin ecosystem is rapidly evolving from experimental crypto into regulated financial infrastructure, driven by the country's revised Payment Services Act of 2023. JPYC Inc. pioneered this shift, launching the first regulated yen-pegged stablecoin, JPYC, in October 2025, which now operates under a Type II funds transfer license and aims for ¥10 trillion in circulation. These stablecoins are addressing critical real-world financial challenges in Japan, such as high remittance fees and slow cross-border settlements, and are being adopted for peer-to-peer transfers, merchant payments, and credit card spending. Major Japanese megabanks like MUFG, SMBC, and Mizuho are also piloting bank-issued stablecoins for B2B and cross-border applications, targeting significant issuance by 2028. Japan's experience offers valuable lessons for other developed APAC markets, demonstrating how stablecoins can enhance existing payment systems by integrating into familiar interfaces like credit cards and merchant networks.
Key takeaway
Japan's revised Payment Services Act has established a regulated framework for fiat-backed stablecoins, enabling JPYC to become the first licensed yen stablecoin by October 2025. Operating under a Type II license with a ¥1M daily cap, JPYC aims for ¥10 trillion in circulation within three years, while major banks pilot B2B stablecoins targeting ¥1 trillion by 2028. This provides a critical blueprint for APAC financial institutions and fintechs to integrate stablecoins into existing payment infrastructure for remittances and B2B settlements, despite current transaction limits.
Topics
- Japan Stablecoin Regulation
- JPYC Stablecoin
- Bank-Issued Stablecoins
- Cross-Border Settlements
- APAC Payment Innovation
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Editorial summary, takeaway, and curation by AIssential. Original article published by Featured Blogs - Forrester.