Japan’s Financial Services Agency has proposed strict collateral requirements for stablecoins pegged to the yen, limiting eligible bonds to those with top credit ratings from issuers boasting at least 100 trillion yen in outstanding debt. This move is part of regulatory updates under the 2025 Payment Services Act designed to transition stablecoins toward regulated money and tighter oversight. Meanwhile, major Japanese banks are collaborating to launch yen-backed stablecoins, signaling a significant shift in Japan’s $9 trillion government bond market and digital finance landscape.