Japan’s FSA opens consultation on bonds eligible for yen stablecoin reserves

Japan’s Financial Services Agency (FSA) has opened a public consultation on draft rules that define which bonds may be used to back yen‑pegged stablecoins issued through trust structures, with the proposal emphasizing safety, liquidity and legal clarity ^[3][1].

The FSA’s public comment period runs through Feb. 27, 2026; submissions will be reviewed and the results published alongside findings from late 2025 after the consultation closes ^[1]. The draft also sets strict collateral criteria that observers say could limit which assets qualify, potentially reshaping demand for Japanese government bonds and affecting megabank‑led digital‑yen settlement projects ^[2][5].

Regulators framed the move as part of integrating stablecoins into Japan’s regulated payments framework while prioritizing reserve safety and liquidity; the consultation is one step in implementing changes from the 2025 payments law overhaul ^[5][3].

Next steps: the FSA will review comments submitted by Feb. 27, 2026, and publish the consultation results together with prior findings, after which stakeholders can expect further guidance on eligible reserve assets ^[1].