Japan’s Cautious Stablecoin Rules May Slow Yen Stablecoin Adoption as USDT Dominance and GENIUS Act Could Boost U.S. Market

• Japan’s approach favors regulated issuers and systemic stability.

• Japan will likely approve a fully collateralized yen stablecoin this fall, led by JPYC and potentially Monex.

• Global stablecoin market cap is ~ $270 billion, dominated by USD-pegged tokens; yen entry aims at payments, remittances and programmable treasuries.

yen stablecoin news: Japan’s first yen stablecoin set to launch this year — learn what it means for payments, tokenization and institutional adoption. Read on for regulatory impact and next steps.

What is the yen stablecoin launch and why does Japan’s regulation matter?

Japan’s yen stablecoin refers to a fiat‑backed digital token pegged 1:1 to the Japanese yen, designed for payments, remittances and tokenized corporate settlements. Japan’s 2023 Payment Services Act amendment limits issuance to licensed banks, trust banks and registered money transfer agents, prioritizing systemic stability over rapid market expansion.

How does the GENIUS Act compare to Japan’s Payment Services Act?

The US GENIUS Act allows a wider set of federally licensed non‑bank firms to issue stablecoins if they meet reserve and compliance standards. By contrast, Japan’s framework confines issuance to banks and designated financial institutions, emphasizing robust capital and operational controls.

That regulatory divergence explains differing adoption paths: the US model encourages faster market entry and scale, while Japan’s model builds infrastructure and institutional trust before mass adoption.

“Japan prizes systemic stability above innovation speed, while the US is signaling a bigger market‑opening play,” said Takashi Tezuka of Startale Group.

While the GENIUS Act is framed as a catalyst for broader stablecoin adoption, Japan’s earlier 2023 reforms show that regulatory clarity alone does not instantly produce active on‑chain usage.

Japan introduced the world’s first comprehensive stablecoin regime in 2023, but real‑world adoption remains nascent. Licensed issuers now exist on paper, yet a vibrant yen‑stablecoin economy has yet to emerge.

In an interview with an industry publication, Takashi Tezuka, country manager at Web3 infrastructure developer Startale Group, said the adoption gap reflects a philosophical split in regulatory design.

“The GENIUS Act was greeted with a mix of relief and curiosity because the US has finally caught up with what Japan did two years earlier — putting a comprehensive legal framework around stablecoins,” Tezuka said.

Under Japan’s Payment Services Act amendment, only licensed banks, trust banks and registered money transfer agents may issue stablecoins. The US GENIUS Act, in contrast, opens issuance to banks and federally authorized non‑bank companies that meet reserve, custody and compliance obligations.

Source: Cointelegraph

First yen-backed stablecoin set to launch this year — who is issuing it?

After two years of regulatory groundwork, Japan is preparing to approve its first yen‑pegged stablecoin this fall, enabling blockchain‑based remittances and yen payments.

Local fintech JPYC is reported to be registering as a money transfer operator to issue the first fully collateralized yen stablecoin, backed one‑to‑one with bank deposits and Japanese government bonds.

Stablecoin market cap. Source: RWA.xyz

Tokyo‑based Monex Group is also considering issuing a yen‑pegged token. As a public company with subsidiaries serving millions, Monex could bring scale, on‑ramps and market credibility if it moves forward.

If adopted, these initiatives would mark the yen’s entry into the roughly $270 billion global stablecoin market, which remains dominated by US‑dollar tokens like USDt and USDC.

How is stablecoin adoption progressing in Japan?

Startale Group has pushed for wider stablecoin use, partnering with SBI to build infrastructure for tokenized stocks and real‑world assets. SBI has separately engaged with global stablecoin and payments developers to expand market access.

Startale and SBI’s platform aims to offer 24/7 access to tokenized securities, near‑instant cross‑border settlement, and fractional ownership to broaden investor participation.

Source: yoshitaka_kitao

Beyond tokenization, firms are focusing on liquidity and corporate use cases. Tezuka describes the next phase as “programmable treasuries”: automated FX hedging, conditional payments and real‑time capital allocation using stablecoins and tokenized assets.

Frequently Asked Questions

When will the first yen stablecoin be approved?

Regulatory filings indicate Japan’s first yen‑backed stablecoin is likely to receive approval this fall, once issuer registration as a money transfer operator and reserve disclosures meet the Financial Services Agency’s standards.

Will Japan’s yen stablecoin be fully collateralized?

Yes. Reported plans show the initial yen stablecoin will be fully collateralized, backed 1:1 with bank deposits and Japanese government bonds to ensure stability and regulatory compliance.

What use cases are expected for a yen stablecoin?

Primary uses include cross‑border remittances, corporate settlements, programmable treasuries and tokenized asset settlements, with benefits in settlement speed, cost and 24/7 accessibility.

Key Takeaways

• Regulatory approach: Japan prioritizes licensed issuers and systemic stability over rapid market entry.
• Market impact: A yen stablecoin could expand use cases for remittances, corporate settlements and tokenized assets.
• Next steps for firms: Prepare compliance, custody and treasury integrations to leverage programmable treasuries.

Conclusion

Japan’s coming yen stablecoin marks a significant step toward tokenizing national‑currency payments and corporate finance. With the Payment Services Act shaping a conservative issuance model, the country aims to build resilient infrastructure and institutional trust. Market players should prioritize compliance, liquidity and treasury automation to capture early use cases as the landscape evolves.