Japan’s Early Lead, Limited Adoption
Japan introduced the world’s first comprehensive stablecoin framework in 2023 through amendments to the Payment Services Act. Only licensed banks, trust banks, and registered money transfer operators could issue stablecoins.
Despite this clarity, a vibrant yen-stablecoin economy has yet to emerge. Issuers exist on paper, but real-world usage remains muted, highlighting a gap between regulation and adoption.
US GENIUS Act Opens the Market
By contrast, the United States has gained momentum with the recently passed GENIUS Act. The law allows not just banks, but also federally licensed non-bank firms to issue stablecoins, provided they meet reserve and compliance requirements.
“Japan prizes systemic stability above innovation speed, while the US is signaling a bigger market-opening play,” said Takashi Tezuka, country manager at Web3 infrastructure firm Startale Group.
First Yen-Backed Stablecoin Coming This Year
That gap may narrow soon. Japan’s first yen-denominated stablecoin is expected this fall, issued by fintech company JPYC as a fully collateralized token backed by bank deposits and government bonds.
Monex Group, the Tokyo-based parent of Coincheck and Tradestation, is also exploring a yen-stablecoin. Its scale and regulatory status could accelerate mainstream use in remittances and corporate settlements.
If successful, these initiatives would mark Japan’s entry into the $270 billion stablecoin market, currently dominated by dollar-backed tokens like Tether’s USDT and Circle’s USDC.
Institutional Push: SBI, Circle, and Ripple
Japan’s financial players are also moving. SBI has signed partnerships with Circle, Ripple, and Startale to create infrastructure for tokenized stocks and real-world assets.
“The goal is to give investors 24/7 trading, near-instant settlement, and fractional ownership,” Tezuka explained. Beyond that, Startale is working on programmable treasuries to integrate stablecoins into corporate liquidity management and FX hedging.
Looking Ahead
While the US may have gained faster traction, Japan’s infrastructure-first approach could pay off in the long run. With yen-stablecoins nearing launch and major institutions entering the field, the country may soon leverage its stability-focused design to compete on the global stage.
