Japan proposes strict stablecoin reserve rules

Japan’s FSA seeks feedback on strict stablecoin reserve rules, allowing only top-rated foreign bonds from large issuers as collateral. Consultation is open until February 27, 2026.

Japan’s Financial Services Agency (FSA) has launched a public consultation to gather feedback on draft regulations for stablecoin reserve assets. The main focus is on which types of bonds can be used as collateral for yen-pegged stablecoins. Under the proposed amendments to the Payment Services Act, set to take effect in 2025, only foreign-issued bonds with the highest credit ratings and from issuers with at least 100 trillion yen in outstanding debt will qualify. These strict requirements aim to boost the liquidity and reliability of regulated stablecoins. The consultation period is open until February 27, 2026. The proposal also addresses the management of reserve assets through specific trust beneficiary interests, further enhancing oversight and financial stability in Japan’s digital payments sector.