Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Japan FSA backs major banks’ yen stablecoin initiative

Japan FSA backs major banks’ yen stablecoin initiative

Crypto.NewsCrypto.News2025/11/06 16:00
By:By Trisha Husada

The Japan Financial Services Agency (FSA) announced that it has launched an initiative to support the yen-based stablecoin joint venture launched by the country’s major banks.

Summary
  • Japan’s Financial Services Agency has launched the Payment Innovation Project to promote blockchain-based payment systems, beginning with a major stablecoin initiative launched by major banks like MUFG, SMBC and Mizuho.
  • Japan’s FSA has been tightening its regulatory oversight of the crypto sector, proposing new rules on crypto lending and insider trading to enhance investor protection and market integrity.

According to a recent press release, the FSA’s Payment Innovation Project will focus on supporting “the use of blockchain technology to enhance payments.” The project is intended to facilitate advancements in digital payments and was launched within the country’s FinTech Demonstration Hub.

The initiative is linked to a joint venture to issue stablecoins pegged to the Japanese yen established by major banks and institutions in the country, including Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group (SMBC), and Mizuho Financial Group.

The consortium aims to launch a yen-pegged stablecoin and create a single platform for stablecoin payments, with the goal of modernizing institutional settlements and reducing transaction costs. The project will reportedly be built on MUFG’s stablecoin issuance platform Progmat, which has served more than 300,000 business partners.

Japan’s FSA confirmed that the joint stablecoin initiative will be the first project to be backed directly by the Payment Innovation Project or PIP. By extension, it is also the 11th project that the country’s FinTech Proof-of-Concept Hub supports.

According to the release, companies will start issuing payment stablecoins starting this month. As part of the partnership, participating companies must ensure that users are protected and well-informed about the systems in place.

“After the completion of the pilot project, the FSA plans to publish the results and conclusions of the project on its website, including issues regarding compliance and supervisory responses identified through the project,” wrote the Japan FSA.

Japan FSA zooms in on crypto regulations

In the past few months, the Japanese financial regulator has been focusing more on expanding oversight on crypto. On Nov. 7, Japan’s FSA held another meeting with the Financial System Council’s Working Group on Cryptocurrency Systems. The two bodies discussed the possibility of strengthening regulations on crypto lending.

The agency proposed bringing crypto lending under the Financial Instruments and Exchange Act to address existing loopholes related to “borrowing” cryptocurrency. The shift would also require stronger risk and custody controls on crypto lending.

On the other hand, the agency also suggested introducing an investment cap for Initial Exchange Offerings, based on the equity crowdfunding framework, to prevent overinvestment driven by market pressure.

Efforts by the FSA to restructure and update its rules on crypto have driven Bybit to temporarily pause onboarding of new users from Japan starting from Oct. 31. The exchange apologized for the inconvenience as it works towards aligning itself with the FSA’s regulatory framework.

Earlier in October, the Japan FSA announced that it would crack down on insider trading in crypto markets by granting authority to the Securities and Exchange Surveillance Commission that would enable them to probe projects suspected of violating the law. The commission would also be able to issue penalties or refer cases to law enforcement for criminal prosecution against crypto projects that engage in insider trading.

The new rules on crypto insider trading would be submitted to parliament sometime in 2026.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

XRP News Today: XRP Faces Impending Death Cross: Falling Below $1.82 Could Lead to a 15% Decline

- XRP faces bearish pressure as a death cross forms, signaling potential 15% price correction below $1.82 support. - Analysts highlight $1.90–$2.08 consolidation zone as critical for stability, with $1.65 Fibonacci level as potential bottom. - Recent ETF launches briefly boosted XRP to $2.25, but weak volume and lack of institutional buying limit upside. - Broader crypto fragility and regulatory uncertainties amplify risks for XRP holders amid technical breakdown threats.

Bitget-RWA2025/11/28 09:50
XRP News Today: XRP Faces Impending Death Cross: Falling Below $1.82 Could Lead to a 15% Decline

XRP News Today: XRP ETF Debut Opens Door to Widespread Adoption in Traditional Finance

- 21Shares confirms imminent U.S. spot XRP ETF launch, marking institutional access for Ripple's asset post-SEC settlement. - Final S-1/A filing clears regulatory hurdles, with $586M net inflows and $85.8M trading volume signaling strong market demand. - Analysts highlight ETF-driven $10B inflow potential, contrasting speculative trading with XRP's cross-border payment utility and institutional adoption. - Multiple XRP ETFs in pipeline could solidify its mainstream status, bridging crypto and traditional m

Bitget-RWA2025/11/28 09:50
XRP News Today: XRP ETF Debut Opens Door to Widespread Adoption in Traditional Finance

Zcash Halving and Its Effects on the Cryptocurrency Market

- Zcash's 2025 halving reduced block rewards by 50%, driving a 1,172% price surge to $589 amid institutional adoption and privacy-focused utility . - Unlike Bitcoin's mixed halving outcomes, Zcash's deflationary model combined with shielded transactions and ESG alignment attracted diversified investor demand. - Privacy features (zk-SNARKs) and 2025 PoS transition stabilized mining returns, but regulatory scrutiny of shielded transactions remains a key risk. - Future Zcash halvings (next in 2028) may face l

Bitget-RWA2025/11/28 09:46
Zcash Halving and Its Effects on the Cryptocurrency Market

Korean Won Stablecoin Alliance Seeks to Disrupt US Dollar Dominance in Digital Finance

- WEMADE leads Korean won stablecoin alliance with CertiK, Chainalysis, and SentBe to challenge USD-dominated stablecoin markets. - CertiK provides security infrastructure for StableNet mainnet, while Chainalysis/SentBe enhance compliance and transparency. - South Korea's $10.3B Upbit-Naver merger and KakaoBank's initiatives reflect national strategy to assert monetary sovereignty via blockchain. - Regulatory hurdles persist, but alliance aims to navigate 51% bank ownership rules through security-complianc

Bitget-RWA2025/11/28 09:32
Korean Won Stablecoin Alliance Seeks to Disrupt US Dollar Dominance in Digital Finance