Japan Stablecoin Summit: Outlook for the Domestic Stablecoin Market in 2026
Pacific Meta, supported by KDDI and Progmat, hosted the second Japan Stablecoin Summit on February 3, 2026. This session discussed the domestic stablecoin market outlook for this year, with the following panelists:
- Noritaka Okabe, CEO, JPYC (Issuer of yen-pegged stablecoin)
- Yoshichika Imaizumi, Director for Blockchain and Innovation, Financial Services Agency (FSA),
- Hiromitsu Shimoirisa, Deputy General Manager, Digital Strategy Division, Sumitomo Mitsui Banking Corporation
- Moderator: Keita Sekiguchi, Deputy Editor, Nikkei
Key Takeaways
- Japan’s "Three Mega-Banks" are collaborating on stablecoin standardization. Led by MUFG, the nation's top banks are moving away from fragmented, individual issuance toward a unified standard to ensure interoperability and combat the dominance of the US dollar in the digital asset space.
- Regulatory caps remain a bottleneck for B2B adoption. While JPYC has reached 1 billion yen in issuance, the current "Fund Transfer Service" license caps transactions at 1 million yen (approx. $6,700), stifling institutional adoption and high-volume "Stable FX" trading.
- The convergence of AI Agents and Crypto is imminent. The panel reached a consensus that AI agents autonomously utilizing stablecoins for payments is technically feasible now and likely to see societal integration within two to five years.
In a forward-looking session regarding the 2026 outlook for Japan’s stablecoin market, industry heavyweights from the public and private sectors convened to discuss the friction points and future potential of the digitized Yen.
The Push for a Unified "Mega-Bank" Coin
A central theme of the discussion was the announcement that Japan's three major banking groups (MUFG, SMBC, and Mizuho) are collaborating on a joint stablecoin initiative. Shimoirisa of MUFG emphasized that for a yen-denominated digital currency to succeed, it cannot be fragmented by bank-aligned specifications.
"If a convenience store accepts 'Coin A' but the supplier requires 'Coin B,' the friction destroys the utility," noted Imaizumi of the FSA. The regulator expressed strong support for this collaboration, aiming to avoid a siloed market. This move is seen as a defensive and necessary strategy to maintain the global competitiveness of the Japanese Yen, which currently constitutes less than 1% of the global stablecoin market, compared to the USD's near 95% dominance.
The "1 Million Yen Wall" and Institutional Barriers
Okabe, CEO of JPYC, highlighted a significant regulatory hurdle. Currently operating under a Funds Transfer Service license, JPYC is restricted to a transaction cap of 1 million yen. While JPYC has successfully issued over 1 billion yen in cumulative volume, this cap prevents the currency from being used for large-scale corporate settlements or inter-bank FX trading ("Stable FX"), where orders can reach billions of yen.
The panel discussed "Trust-type" stablecoins as a solution to bypass this limit, as they do not have the same caps. However, no trust-type coins have launched yet due to high setup costs and the complexity of banking liability structures.
DeFi and the "Safe Zone" for Banks
The discussion touched on the integration of traditional banking with Decentralized Finance (DeFi). While global regulators are still grappling with how to police DeFi, Japanese banks are exploring "permissioned" environments. Shimoirisa suggested that banks might enter the space by verifying users (KYC) before they interact with DeFi protocols, creating a "clean" liquidity pool that adheres to compliance standards while leveraging blockchain technology.
The AI Agent Economy
Perhaps the most futuristic yet immediate prediction came regarding AI. The panel agreed that the era of "AI Agents"—software that autonomously executes tasks and payments—is arriving. Okabe predicted widespread use within two years, noting the technology is already sufficient.
Shimoirisa confirmed that banks are actively discussing how to allow AI agents to access banking APIs for settlements. While the FSA’s Imaizumi remained cautious about the timeline for societal acceptance (estimating closer to five years), he affirmed that current regulations do not explicitly ban AI-driven payments, provided wallet management and security standards are met.
Norbert Gehrke
