News, data and analysis on tokenized assets, market design and digital economic systems.
Stablecoin issuance stays restricted to licensed banks, trust companies and funds-transfer providers, while an Act enacted in July 2026 moves crypto assets themselves out of the Payment Services Act and into the Financial Instruments and Exchange Act from April 2027.
Japan's Payment Services Act limits stablecoin issuance to licensed banks, trust companies and funds-transfer service providers, and the 2025 PSA amendment, enacted on January 30, 2026, added a lighter intermediary category and allowed trust-type issuers to hold up to 50% of reserves in short-term Japanese government bonds. From June 1, 2026 the FSA recognised qualifying foreign stablecoins as electronic payment instruments usable for payments through licensed intermediaries, with implementing ordinances issued on June 13, 2026. A further Act amending the FIEA and the PSA was enacted on July 15, 2026: it moves crypto assets from the Payment Services Act to the Financial Instruments and Exchange Act, introducing an insider-trading prohibition, issuer and exchange disclosure obligations, reserve fund requirements and criminal penalties of up to ten years' imprisonment or a ¥10m fine, while stablecoins and prepaid instruments remain under the PSA. The FSA's explanatory materials set the main provisions to take effect on April 1, 2027 and further provisions on October 1, 2027. In parallel, the FSA's Payment Innovation Project approved a proof of concept in November 2025 for a joint yen stablecoin from Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group built on the Progmat platform.
| Framework | Status | Date | Note |
|---|---|---|---|
| Payment Services Act electronic payment instruments regime (2022 amendment) | In force | 1 June 2023 | Restricts yen-referenced stablecoin issuance to banks, trust companies and funds-transfer service providers, and licenses intermediaries handling electronic payment instruments. |
| 2025 Payment Services Act amendment | Enacted | 30 January 2026 | Adds an intermediary business category with lighter obligations and permits trust-type issuers to hold up to 50% of reserves in short-term Japanese government bonds and term deposits. |
| Recognition of qualifying foreign stablecoins as electronic payment instruments | In force | 1 June 2026 | Enables distribution of qualifying foreign fiat-backed stablecoins through licensed intermediaries subject to audited reserves, same-currency backing and freeze capability; implementing ordinances issued June 13, 2026. |
| Act amending the Financial Instruments and Exchange Act and the Payment Services Act (crypto assets) | Enacted | 15 July 2026 | Moves crypto assets from the PSA to the FIEA with insider-trading prohibition, disclosure obligations, reserve funds and penalties up to ten years' imprisonment or ¥10m; stablecoins and prepaid instruments stay under the PSA. Cabinet approved the bill April 10, 2026. Main provisions apply from April 1, 2027, further provisions from October 1, 2027. |
| FIEA security token (electronically recorded transferable rights) regime | In force | 1 May 2020 | Brings tokenized collective investment scheme interests and beneficial interests in trusts within the securities disclosure and intermediation regime. |
| FSA Payment Innovation Project proof of concept for a joint bank stablecoin | In force | 30 November 2025 | Approved proof of concept for a jointly issued yen stablecoin from MUFG, SMBC and Mizuho on the Progmat platform, with reported plans for US dollar integration. |
| Foreign Exchange and Foreign Trade Act travel rule for crypto asset transfers | In force | 1 June 2023 | Statutory originator and beneficiary information requirements replacing earlier self-regulatory guidance. |
Every development we have evidenced under Japan, newest first.
MUFG Bank, Mizuho Bank and Sumitomo Mitsui said a 17 to 23 July trial of a deposit-backed, trust-type yen coin they issued jointly, built around Mitsubishi Corporation's cross-border payments, proved joint issuance workable. No amount or network was named; live use is aimed for by March 2027.
JPYC Inc said on 5 August 2026 that an extension of its Series B round had taken the round to approximately 6bn yen cumulatively, with AZ-COM Maruwa Holdings as the investor. Its own release of 22 May put that figure at approximately 5bn yen. The two had agreed a capital and business alliance on 22 July to build a settlement platform paying the logistics group's network in the yen stablecoin.
JPYC started issuing its yen-referenced stablecoin and opened JPYC EX, its issuance and redemption platform, with the token deployed on Avalanche, Ethereum and Polygon. The company had been registered as a funds transfer service provider under Japan's Payment Services Act on 18 August 2025 and said the token is exchangeable one-for-one with the yen and backed by yen deposits and government bonds.
Progmat, Inc. was established with capital of ¥100m to develop and operate platforms for issuing security tokens, utility tokens and stablecoins in Japan. Mitsubishi UFJ Trust and Banking held 49%, with NTT Data, Mizuho Trust & Banking, Sumitomo Mitsui Trust Bank, Sumitomo Mitsui Financial Group, SBI PTS Holdings, JPX Market Innovation & Research and Datachain holding the remainder.
The banks say a week-long July test of a shared yen coin, built around Mitsubishi Corporation's payments abroad, worked. They aim for real use before April 2027, but say neither how much moved nor on what network.
The yen stablecoin issuer says the extension takes the round to about 6bn yen cumulatively, with a listed logistics group aboard.
What issued, what settled, what the supervisors changed, with the numbers behind it and a note on what the numbers do not show. One email, Thursday mornings.
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