Japan Tightens Stablecoin Rules with Bond Reserve Requirements
Japan's Financial Services Agency (FSA) has unveiled stringent criteria for stablecoin reserves under its 2025 Payment Services Act implementation. The rules mandate foreign bonds to carry top-tier credit ratings (1–2 or higher) and minimum outstanding issuance of 100 trillion yen—effectively limiting eligible collateral to major sovereign and corporate debt issuers.
The proposed framework forces stablecoin operators like JPYC to pivot toward Japanese government bonds for reserve allocations. Financial institutions must now provide explicit risk disclosures to customers, even when branding suggests banking-level security.
With a February 2026 deadline for public consultation, the FSA's MOVE signals Japan's push to align digital assets with traditional finance rigor. Market participants anticipate these standards could reshape stablecoin issuance strategies across Asia's second-largest economy.
