Japan's Financial Services Agency (FSA) has launched a public consultation process, introducing draft rules on the types of eligible bonds that stablecoin issuers can hold in their reserves, with input sought until February 27, 2026.
Advancing the Regulatory Framework
This move marks a significant step in Japan's efforts to strengthen its digital asset regulatory system. According to plans, the new rules will form a key part of the 2025 Payment Services Act revision, clarifying the types of bonds that can be included in stablecoin reserve assets.
- The draft will regulate the asset composition of yen-pegged stablecoins
- The focus is on ensuring safety and liquidity of issuer holdings
- The consultation period demonstrates regulatory transparency
Implications for the Stablecoin Market
Once implemented, the rules will significantly impact Japan's domestic stablecoin market. All regulated stablecoin issuers must adjust their reserve asset allocations to meet compliance requirements.
Industry analysts suggest this move will enhance Japan's influence in global digital finance while providing greater investor protection.