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Japan's FSA Tightens Grip on Yen Stablecoin Reserves with Strict Bond Rules

Japan FSA Tightens Yen Stablecoin Rules

Dario Cesaro avatar
Written by Dario Cesaro
Updated over a week ago

Japan's Financial Services Agency (FSA) has introduced stringent new regulations for yen-pegged stablecoin reserves, demanding that collateralized foreign bonds meet exceptionally high credit ratings and originate from issuers with at least 100 trillion yen in outstanding debt. This move is set to significantly reshape the landscape for stablecoin issuers and potentially impact demand for Japanese Government Bonds (JGBs).

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