Japan’s Financial Services Agency has opened a public consultation on draft rules defining which bonds can be used as reserve assets for regulated stablecoins issued under the country’s updated payments law.
The consultation, which runs until Feb. 27, 2026, is part of the implementation of amendments to the Payment Services Act passed in 2025 and will apply to all yen-pegged stablecoins issued within Japan.
In a statement on Monday, the Financial Services Agency said the draft notices set standards for “specified trust beneficiary interests,” the structure used by stablecoin issuers to manage reserves.
Under the proposal, eligible collateral would be limited to certain foreign-issued bonds with high credit ratings and issuers with at least ¥100 trillion in outstanding bonds.
The regulator also outlined new supervisory guidance requiring banks and insurance groups to clearly explain risks when subsidiaries provide crypto intermediation services.
Additional draft rules would require applicants handling foreign-issued stablecoins to confirm that issuers will not market or redeem tokens for general users in Japan, with the FSA coordinating oversight with overseas regulators.
The move comes as Japan expands its regulated stablecoin ecosystem, following launches and pilot projects backed by major banks including MUFG, SMBC and Mizuho.