Overview
- The Financial Services Agency published draft standards to implement the 2025 Payment Services Act and opened a public consultation running through February 27, 2026.
- Foreign bonds used as backing would need a top-tier credit rating of “1–2” or better and come from issuers with at least 100 trillion yen outstanding, sharply limiting the pool.
- New supervisory guidance requires banks and insurers offering crypto services to issue clear risk warnings and to screen foreign stablecoin distributors, with plans for cross-border coordination.
- JPYC, which launched Japan’s first legal yen-pegged token in October, plans to allocate about 80% of reserves to JGBs and 20% to bank deposits, and its CEO said issuers could become major JGB holders as the BOJ tapers buying.
- Mitsubishi UFJ, Sumitomo Mitsui and Mizuho are developing a network for corporate clients to transfer yen-pegged stablecoins, with reports pointing to potential dollar-pegged offerings later.