Japanese banks will be able to issue stablecoins with the long-awaited Payment Services Act coming into effect on June 1, 2023.
Japan passed a law regulating stablecoins in June 2022, making it one of the first major economies to establish a regulatory framework for these assets. In December, the Financial Services Agency made progress in lifting the ban on foreign-issued stablecoins.
Four Japanese Banks Plan to Issue Stablecoin
With the enactment of the revised payment services law, banks, trust companies and fund transfer operators will be authorized to issue stablecoins.
Operators issuing stablecoins will need to register with the government. In addition, businesses issuing offshore stablecoins in Japan will have to comply with capital maintenance requirements. With stablecoins, products will be exchanged for funds received via blockchain ledgers.
Mitsubishi UFJ Trust and Banking is preparing an issue called Progmat Coin. This stablecoin can be used to buy digital securities and NFT.
Alongside Mitsubishi UFJ Trust and Banking, Minna Bank, Tokyo Kiraboshi Financial Group and Shikoku Bank are also planning to launch their own stablecoin. All three banks will use a platform provided by Tokyo-based startup GU Technologies.
Hidekazu Kondo, chief technology officer of GU Technologies, said that several regional banks are considering issuing more stablecoins.
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