The U.S. GENIUS Act is seen as a catalyst for promoting stablecoin adoption, while Japan's early reforms show another side: clear regulations did not immediately lead to practical applications.
In 2023, Japan established the world's first comprehensive stablecoin system, but its usage is not high. Although there are nominal licensed issuers, the yen stablecoin economy has yet to prosper.
In an interview with Cointelegraph, Takashi Tezuka, manager of the Japanese branch of Web3 infrastructure development company Startale Group, stated that the adoption gap between Japan and the U.S. reflects philosophical differences in regulatory design.
Under Japan's (2023 Payment Services Act) amendment, only licensed banks, trust banks, and registered remittance agents can issue stablecoins.
In contrast, the U.S. GENIUS Act has relaxed restrictions: not only banks but federally licensed non-bank companies can issue stablecoins as long as they meet reserve and compliance standards.
The divergence between Japan and the U.S. lies in: Japan places more emphasis on system stability, while the U.S. is more focused on market openness.
Soon, this gap may narrow. Japan's focus on infrastructure has prepared for the support of programmable enterprise-level capital markets.
The first yen-backed stablecoin will be launched this year.
Japan has built a regulatory framework over the past two years and plans to launch its first yen stablecoin this fall, thereby opening up possibilities for blockchain-based remittances and payments.
Reportedly, the first stablecoin will be issued by local fintech company JPYC, fully backed one-to-one by bank deposits and Japanese government bonds.
Tokyo's Monex Group is also considering issuing its own yen-pegged stablecoin, which will be fully backed by government bonds and other liquid assets, targeting corporate settlements and global remittances.
If these plans are realized, it will mark the entry of the yen into the global stablecoin market, which is currently dominated by dollar tokens.
Related collaboration: SBI is working with JPYC and Ripple to promote the development of a tokenized asset platform.
Startale focuses on expanding the company's use of stablecoins, such as automated risk hedging and real-time capital allocation.