Japan, which Capital been conservative since the 2018 Coincheck hack, is finally moving from a regulatory framework to stablecoin implementation.
Analysts, including The Diplomat , see Japanese yen Token as a counterweight to the reliance on the dollar in global trade. BeInCrypto reports that Asian financial hubs are increasing competition as stablecoin initiatives spread across the region.
Japan turns to stablecoins
The most recent change came in September 2025, when Japan Post Bank confirmed plans to issue deposit Token in 2026 using DeCurret DCP's infrastructure. The rollout is part of Japan's larger strategy to build DCJPY as a trusted channel for Tokenize transactions.
In August, SBI VC Trade signed basic agreements with SMBC and Ripple to jointly develop both a yen-based Token and Ripple’s RLUSD stablecoin for Japan.
Meanwhile, JPYC is preparing to launch JPYC EX, its official issuance and redemption platform. CEO Noritaka Okabe told Reuters that demand for JPYC will come from domestic institutions before expanding globally, backed 1:1 by yen deposits and Japanese government bonds.
Okabe envisions JPYC as “ Japan’s Circle ,” providing a stable and compliant digital yen for both domestic and international markets.
Meanwhile, software company Asteria has introduced a codeless converter that integrates JPYC into enterprise workflows. The company is adopting stablecoin payments in its enterprise system.
From Conservative to Leading Stablecoin Nation
The amendment to Japan's Payment Services Law in 2023 legalized stablecoins as electronic payment instruments, Chia into three types:
- Remittance Type: Issued by licensed remittance service providers (e.g. JPYC).
- Trust Type: Backed by segregated trust assets.
- Deposit type: Issued by banks, insured as deposits (e.g. Japan Post Bank).
The 2025 amendment added intermediary licenses, relaxed trust asset rules, and required FSA domestic reserve storage. The FSA’s Administrative Policy 2025 explicitly listed yen stablecoins as a tool for “upgrading payments.”
These reforms are turning Japan into a leading case study in Asia, showing how regulation can foster innovation without sacrificing compliance.
Meanwhile, Japan’s multi-layered approach contrasts with the United States, where USDC and USDT dominate the $150 billion market. The Bank of Japan Digital Currency Forum emphasizes the importance of compliance features such as freeze functionality, permission controls, and auditable ledgers.
Regional banks are also moving from experimentation to real-world testing. Hokuriku Bank is co-developing with Soft Space the world's first SoftPOS system supporting deposit Token by fiscal 2026.
Minna Bank , along with Solana Japan, Fireblocks and TIS, is testing RWA payments and cross-border remittances.
BeInCrypto reports that even Japanese auto parts manufacturers are investing in stablecoin startups, signaling a broader industry shift toward blockchain-based finance.
Behind the push: Regulation and strategy
Two main drivers explain Japan's push. The first is regulatory clarity: Unlike the Shard US system, Japan now has a comprehensive regulatory framework.
- There is also geopolitical leverage. As NRI’s July 2025 column observed, yen Token could bolster Japan’s financial sovereignty amid the dominance of the US dollar and China’s digital yuan.
In an interview with BeInCrypto , Dr. Sam Seo, Chairman of Kaia, said:
“Japan is taking a very different approach. Their regulatory clarity allows stablecoins to be used in the real economy, not just as reserves. That makes yen Token an alternative Asian model.”
Leading Bank
While fintech JPYC is ahead, SMBC, Japan Post Bank, and Monex Group are joining in with deposit or trust models. Monex confirmed it is discussing a remittance-oriented stablecoin but clarified that no official decision has been made on its issuance.
Wider impact
- Merchants: SoftPOS is ready for deposit Token to reduce card fees.
- Company: JPYC converter allows integration into ERP and accounting.
- Regulator: Blockchain footprint enhances AML enforcement.
The FSA’s 2025 mandate study stressed that the development of yen Token must balance efficiency and preventing illegal transfers – a theme reiterated by the BOJ.
Important Information
- JPYC EX will launch in fall 2025 as Japan's first licensed yen stablecoin platform.
- Asteria has built enterprise tools for JPYC.
- SBI, SMBC, and Ripple Collaborate on Yen and RLUSD.
- Hokuriku Bank develops SoftPOS for deposit Token .
- Japan Post Bank plans to Token Issuance in 2026.
- Monex explores remittance stablecoin, but has not yet launched.
- Legal reforms in 2023 and 2025 have created the legal framework.
Setting global standards
By 2026, Japan could have multiple yen Token : JPYC's remittance model, SMBC's trust coin, Japan Post Bank's deposit Token , and Monex's remittance use case.
Their viability will depend on adoption and liquidation. As The Diplomat noted, success could mark “the return of Japanese digital finance.”
The US market has grown largely without a unified law, while Europe’s MiCA, due in 2024, has provided clarity to the EU. Japan’s model, which combines banks, fintechs and regulators, stands out in Asia with its priority on compliance.
| Organization / Project | Token Type | Release date | Features |
|---|---|---|---|
| JPYC (JPYC EX) | Transfer money | Fall 2025 | First Licensed Yen Stablecoin |
| Hokuriku Bank + Soft Space | Deposit (POS) | Fiscal year 2026 | PCI MPoC SoftPOS |
| Minna + Solana Bank Japan | Hybrid Discovery | In progress | RWA and cross-border payments |
| Japan Post Bank | Deposit Token | Fiscal year 2026 | Deposit insurance, use of Non-Fungible Token/ST |
| SBI + SMBC + Ripple | Mixed (yen + RLUSD) | 2025–2026 | Cross-border payments |
| Monex Group | Stablecoins for Remittance | Not determined | Corporate/international focus |
Regulators tightened regulations after the 79 billion yen hack of Coincheck in 2018 and the DMM Bitcoin breach in 2024. This slowed innovation but laid the groundwork for safer digital currencies.
The NICMR’s 2022 paper argues that without trust, stablecoins risk becoming “bad money.” Japan’s current two-track system — deposit and electronic instruments — directly addresses that critique.
Risks include:
