Japan’s PSA Stablecoin Framework: Licensed JPY Issuers, USDT Limits, and 2026 Updates

Japan’s revised Payment Services Act framework limits “digital-money type stablecoins” to licensed domestic issuers, with rules effective from June 2023 and additional refinements scheduled by June 2026. JPYC Co. launched a fully regulated yen-pegged stablecoin in October 2025 and set targets of 10 trillion yen in circulation over three years and 60 trillion yen within five years. The structure also constrains access to foreign dollar stablecoins, with USDT largely restricted and USDC offered through a limited regulated pathway via SBI VC Trade.