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Japan stablecoin / BaaS bank perimeter (2025–2026)

Confidence: Likely Updated 2026-05-25 Review by 2026-11-25 Sources 11 Machine-translated Original (JA)
#banking#stablecoin#baas#regulatory-perimeter#EPI#electronic-payment-instrument
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This entry sits under banking index as the bank-side perimeter view of the Japan stablecoin / electronic-payment-instrument (EPI) regulatory architecture. Read it with Three-Layer Structure of Japan's Stablecoin Regulatory Regime (JPYC, USDC, Project Pax) for the fintech-side perimeter view, with the platform anchor Progmat and the issuer anchors JPYC · SBI VC Trade USDC distribution, with jp-stablecoin-progmat detailed · jp trust-type SC architecture · jp-stablecoin-dcjpy · Japan stablecoin 2026 event tracker · Japan EPI three types overview · Japan EPI four camps comparison · institutional stablecoin deposit-token thesis, and with the BaaS framework at BaaS Japan landscape · Japan BaaS operating models. For license-stack context route through payment license stack · bank license / BaaS boundary.

TL;DR

By 2025, Japan’s regulatory perimeter for bank-issued digital money has hardened into a three-layer architecture under the 改正資金決済法 framework: (1) deposit tokens issued by banks under the standard 銀行法 deposit liability regime, (2) stablecoins / electronic payment instruments (電子決済手段) issued under a new 改正資金決済法 regime that recognises three issuer types — bank (預金型 EPI), 資金移動業 (funds-transfer-type EPI), and 信託 (信託型 EPI) — and distributed by a separate 電子決済手段等取引業者 (EPI service provider) license, and (3) non-issued foreign stablecoins (USDC etc.) distributed in Japan only through the same EPI-service-provider license. The bank-side perimeter has three concrete consequences: (a) only banks can issue 預金型 EPI as bank-deposit-backed tokens; (b) only trust banks (信託兼営銀行) can be issuers of 信託型 stablecoin under platforms like Progmat; (c) BaaS partner-channel distribution by banks now coexists with a separate stablecoin distribution channel under different license stacks. MUFG’s Progmat platform (independent company since 2023-10) provides the institutional rails for 信託型 SC; JPYC runs the 資金移動業-based JPY SC; SBI VC Trade is the single registered foreign-SC distributor (USDC). Regional-bank pilots are emerging but operationally limited as of the 2025 transition: 北國銀行’s deposit-type stablecoin 「トチカ」 (a tokenized deposit) launched 2024-04-01 as Japan’s first such product, and ゆうちょ銀行 announced tokenized-deposit handling via DeCurret DCP targeting FY2026.

1. The three-layer perimeter

LayerLicense / routeWhat banks can doWhat banks cannot do
Deposit token (預金トークン)銀行法 standard bank depositIssue tokenized deposit balances backed 1:1 by deposit liabilities on the bank’s balance sheet; settle peer-to-peer or commercial transactions; redeem at parCannot be transferred outside the bank network without legal-form change; cannot be held by non-bank-account holders directly
Bank-issued EPI (預金型 EPI / 電子決済手段 第1号)改正資金決済法 — EPI issuerIssue a regulated electronic-payment-instrument backed by deposits; distributable through bank or non-bank EPI service providersSubject to EPI regime (KYC, redeemability, reserve, conduct rules); cannot disguise non-deposit tokens as deposit-backed
Trust-type EPI (信託型 EPI / 電子決済手段 第3号)改正資金決済法 — trust-bank issuerTrust banks (信託兼営銀行) can issue 信託型 stablecoin where backing assets sit in trust; institutional / platform-based use caseNon-trust-banks cannot issue 信託型 EPI; issuer role distinct from platform-provider role
Funds-transfer EPI (資金移動型 EPI / 電子決済手段 第2号)改正資金決済法 — funds-transfer-business issuerA funds-transfer business (資金移動業, 第1〜3種) can issue a JPY stablecoin under the EPI frameworkA bank as such does not need 資金移動業 — different lane
EPI distribution (電子決済手段等取引業)改正資金決済法 — separate distributor licenseBanks or non-banks holding the 電子決済手段等取引業 license can distribute EPI to customers; foreign SCs (USDC) are distributable only via this licenseDistribution license does not authorise issuance

Deposit token — within the standard bank deposit regime

A deposit token is not a new legal form. The bank holds the customer deposit liability under 銀行法; the token is a digital representation of that deposit balance on a programmable ledger. Settlement, redemption, and consumer protection all follow standard bank-deposit rules. Examples include DCJPY (Decurret-anchored bank-deposit-token initiative).

Pros for the bankCons for the bank
No new license; fits inside existing 銀行法 frameworkLimited to bank-customer-to-bank-customer flow without further legal-form changes
Backing is the bank’s deposit balance — already capitalised and supervisedRequires bilateral / consortium agreements to scale beyond a single bank
Customer protection identical to depositProgrammability constraints from deposit-liability regulatory expectations

Bank-issued EPI (預金型) — bridging deposit and broader circulation

The 預金型 EPI variant lets a bank issue a regulated electronic-payment-instrument whose backing is deposit liabilities but whose circulation can extend beyond a single bank’s customer base via 電子決済手段等取引業 distributors. This is the bank-side analog to the funds-transfer-type 資金移動型 EPI that non-banks like JPYC use.

Pros for the bankCons for the bank
Allows the bank’s brand and balance sheet to anchor a circulating SCAdds the EPI regulatory layer (KYC obligations on distributors, redeemability rules, reserve rules) on top of banking supervision
Compatible with cross-bank settlement designDistributors must hold the EPI distributor license — adds a coordination burden

Trust-type EPI (信託型) — the institutional-platform lane

The 信託型 SC uses a trust structure: a trust bank (信託兼営銀行) serves as the issuer; the backing assets (JPY deposits at multiple banks, JGBs, etc.) sit in trust; the platform provider arranges the technology rails; institutional and corporate users hold and transact the tokens. The Progmat platform is the leading example.

Pros for the bankCons for the bank
Trust segregation means SC holders’ claim is on the trust assets, not on the trust bank’s general balance sheetOnly trust-banks can issue — restricts the issuer set to a few institutions
Multi-asset backing enables broader institutional adoptionMore operational complexity than a single-bank deposit-token model
Platform-provider role (Progmat) is distinct from issuer role (trust bank) — clear regulatory layeringCoordination across issuer / platform / participating-bank / EPI distributor is non-trivial

3. Issuer / distributor anchor map (2025–2026)

TokenBacking formIssuerPlatformDistributionRegulatory layer
DCJPY (deposit token)Bank deposit liabilityParticipating banks (multi-bank pilot)DeCurret DCPLimited / pilot銀行法 standard
Progmat Coin (planned 信託型 SC)Trust-held JPY assets[[trust-banks/mitsubishi-ufj-trust-bank三菱UFJ信託銀行]] and other participating trust banks[[payment-firms/progmatProgmat]]
JPYC資金移動業 — backing held under 資金移動業 funds management rules[[payment-firms/jpycJPYC株式会社]]Own infrastructureDirect + crypto exchanges
USDC (foreign SC, distributed in Japan)Circle reserveCircle (US issuer)(foreign issuer infrastructure)[[exchanges/jp-exchange-sbi-vc-tradeSBI VC Trade]] — the single registered EPI distributor for USDC as of the 2025–2026 cycle

Why platform-provider ≠ issuer

  • Progmat’s regulatory burden is that of a technology and operating-platform provider, not a regulated financial institution.
  • Issuer status (and the corresponding 改正資金決済法 obligations) sits with the trust bank — keeping the consumer-protection and SC-redemption obligations on a regulated bank balance sheet.
  • Multiple trust banks can act as issuers on the same Progmat platform, enabling broader institutional adoption without bottlenecking on a single issuer.

This pattern mirrors the way BaaS separates the partner brand (UX layer) from the bank (license + balance sheet); Progmat separates the platform (technology) from the issuer (license + backing assets).

What regional banks can and cannot do

  • Deposit tokens are accessible to any bank under 銀行法 — regionals can participate in multi-bank deposit-token initiatives.
  • 預金型 EPI issuance is open to regionals in principle, but the EPI regulatory layer adds operational and supervisory burden that may not be cost-effective for single-bank regional issuance — coordinated platform participation is the practical route.
  • 信託型 EPI issuance requires trust-bank license; only regionals with a 信託兼営銀行 license can directly participate as issuers.

BaaS partner-channel distribution

  1. EPI distribution license overlay. A BaaS-participating regional bank wishing to distribute SCs to its partner-brand customers needs the separate 電子決済手段等取引業 license.
  2. Deposit-token integration. A BaaS partner-brand customer journey can incorporate deposit-token settlement once the underlying bank deposits are tokenized — but this is still in pilot / planning stage as of 2025–2026 (e.g. 北國銀行「トチカ」 live from 2024-04; ゆうちょ銀行 tokenized-deposit handling targeted for FY2026; 改正資金決済法 公布 2025-06-13).

6. Deposit-token vs stablecoin — the operational boundary

DimensionDeposit tokenStablecoin / EPI
Legal liabilityBank-deposit liability under 銀行法EPI under 改正資金決済法 (deposit-, funds-transfer-, or trust-type backing)
Who can issueBanksBanks (預金型 + 信託型 via trust bank), 資金移動業 (資金移動型)
Customer relationshipBank-customer-of-the-issuerHolder-of-the-EPI; not necessarily a bank customer
Deposit insuranceStandard 預金保険 coverageDoes not apply to EPI — replaced by EPI-regime reserve / segregation rules
Cross-institution transferabilityConstrained to bank network without further legal-form changeBuilt for circulation via EPI distributors
ProgrammabilityLimited by deposit-liability constraintsHigher programmability under EPI framework
Use casesInter-bank settlement, corporate treasury, conditional paymentsRetail / institutional circulation, cross-platform settlement
ReservesBank-balance-sheet liabilities matched by bank-asset sideEPI-specific reserve / trust rules

7. The four EPI camps (cross-cutting summary)

CampLead operatorLegal formCoverage
Trust-type / institutional[[payment-firms/progmatProgmat]] platform + participating trust banks信託型 EPI
Funds-transfer-type / retail JPY[[payment-firms/jpycJPYC]]資金移動型 EPI
Foreign-SC distribution[[exchanges/jp-exchange-sbi-vc-tradeSBI VC Trade]] (USDC distributor)電子決済手段等取引業 (distribution only)
Deposit-token (bank-rails)DCJPY (DeCurret + participating banks)銀行法 standard deposit liabilityInter-bank settlement, corporate treasury

For deeper comparison of the four camps and three issuer types, see Japan EPI four camps comparison and Japan EPI three types overview.

Sources