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3w ago

Japan's Ruling Party Proposes Crypto-ETF Rules and Push for Yen Stablecoins

Tokyo says the plan would defend the yen's role in regional tokenized settlement by changing laws and market rules.

Banknotes of Japanese yen are seen in this illustration picture taken September 22, 2022. REUTERS/Florence Lo/Illustration
Japan's Defense Minister Shinjiro Koizumi and South Korea's Defense Minister Ahn Gyu-back shake hands prior to their meeting at the headquarters of the Japan Maritime Self-Defense Force, in Yokosuka District, Tokyo, January 30, 2026. Eugene Hoshiko/Pool via REUTERS/File Photo
Where softbank stands to benefit on japan’s stablecoin plans

Overview

  • The LDP's blockchain promotion panel formally submitted a proposal to Finance Minister Satsuki Katayama on Monday, June 1, 2026, asking the government to create a legal framework for crypto exchange-traded funds and to promote yen-pegged stablecoins for settlement in Asia.
  • Regulators have already moved the legal needle by expanding Cabinet Office ordinance language to treat some trust-type foreign stablecoins as electronic payment instruments, a change that took effect on June 1, 2026 and clarifies how certain tokens fit under the Payment Services Act.
  • Japan's central bank and the FSA have supported pilot work: domestic startup JPYC has issued a yen-pegged token and the country's three largest banks are running an FSA-backed experiment on jointly issuing stablecoins, showing practical groundwork exists for wider use.
  • Industry participants say crypto ETFs could reach Japan within about two years if lawmakers set custody, tax and investor-protection rules, though some expect listings could slip to 2028 if legislation is slow or complex.
  • Large private firms are already positioned to control payment and distribution rails if the plan advances; PayPay, SoftBank and PayPay-linked stakes in Binance Japan could steer wallets, on/off ramps and merchant settlement while further legal and operational steps remain needed.