Japan’s Stablecoin Rules and JPYC’s Path to Compliant Issuance

Japan amended its Payment Services Act in 2023 to regulate stablecoins as “electronic payment instruments.” SBI Holdings and Startale Group jointly developed JPYSC, with SBI Shinsei Trust & Banking managing reserves and issuing the token and SBI VC Trade handling distribution. Unlike stablecoins issued by fund transfer service providers, the trust-based structure is not subject to the ¥1 million limit. It targets cross-border settlement, real-world assets (RWAs) and AI agent payments.

The companies unveiled the JPYSC name and logo on February 27, 2026, and initially planned a second-quarter launch. It was formally issued on June 24 and is initially restricted to SBI VC Trade accounts, with transfers to external wallets not yet available. Technical and operational preparations are complete, but circulation on public blockchains and round-the-clock settlement for cross-border payments and tokenized assets will begin only after regulatory and tax treatment is clarified and authorities provide confirmation.

Japan has previously imposed strict restrictions on stablecoins issued overseas, requiring related services to be provided by banks, funds transfer service providers or trust companies registered under the Payment Services Act. The Financial Services Agency’s decision to permit overseas trust-based stablecoins could open Japan’s payments market to USDC, USDT and Ripple’s RLUSD, with full-reserve and anti-money-laundering requirements aimed at reducing risk.

From June 1, 2026, Japan’s Financial Services Agency will formally recognize compliant overseas trust-based stablecoins as legal electronic payment instruments. Providers must maintain full backing with substantive trust assets, ensure that stablecoins can be redeemed at face value, and comply with strict customer due-diligence and anti-money-laundering requirements. Assets such as USDC must still pass regulatory reviews and be offered through compliant Japanese intermediaries.