The regulatory framework in the field of cryptocurrencies and digital payments in Japan is entering a new phase. The country’s financial supervisory authority has opened draft rules for public comment on what types of bonds can be used in stablecoin reserves. The process is seen as an important step towards the implementation of legal changes that will come into force in 2025 and redefine payment systems. The consultation process aims to support Japan’s goal of building a regulated stablecoin ecosystem with clearer and binding rules.
Bond Standards for Stablecoin Reserves Clarify
Financial Services Agency In the statement published on Monday, a number of draft regulatory notices related to the 2025 amendments to the Payment Services Act were shared. The drafts describe in detail how the reserve assets of regulated stablecoins issued through trust structures will be managed. In this context, it is clearly determined which assets the investment structure used by stablecoin issuers, called “specific trust beneficiary interests”, can be directed to.
In the draft regulations, bonds that could be considered reserve assets were subject to strict criteria. Accordingly, only bonds issued by foreign issuers and with high credit scores will be considered eligible. While the requirement to be at a level of “1–2” or better in the credit risk classification is required, the total bond stock of the relevant foreign issuer must be at least 100 trillion yen. Authorities emphasize that these thresholds aim to maintain the liquidity and reliability of reserves.
The public consultation process will continue until 27 February 2026. The drafts implement the implementation details of the 2025 law, adopted in June 2025, which updates the framework on payments and electronic payment instruments. Once the process is completed, it is expected to create a clearer and more predictable reserve regime for stablecoin issuers.
Brokerage Rules and Japan’s Stablecoin Strategy
The draft package is not limited to reserve standards only. It also includes new administrative and supervisory guidance for banks, insurance companies and their subsidiaries. A new article added to the guidelines requires that if an affiliate offers cryptocurrency brokerage services, the risks must be clearly explained to customers. The aim is to prevent being part of a traditional financial group from underestimating the risk level of the products.
Additional obligations are also imposed on businesses that want to transact with foreign stablecoins. Applicants must disclose that the foreign issuer will not engage in issuance, redemption or marketing to general users in Japan. Financial Services Agencyalso states that it will share information with overseas regulators about such assets and issuers.
The steps coincide with Japan’s goal of controlled growth in the stablecoin space. Local fintech company in October JPYClaunched the country’s first legally recognized yen-backed stablecoin. In the same period, Japan’s three largest banks MUFG, SMBC And Mizuho; It launched stablecoin and tokenized deposit pilot projects covering payments, interbank settlement and corporate financial services. These studies received official support from the regulatory body in December.
