Japan stablecoin market expands with Unifi wallet integration and new issuance models

The Japanese stablecoin market is expanding through new technical integrations and the emergence of competing issuance models. LINE NEXT has enabled its Unifi non-custodial wallet to support the direct issuance and redemption of JPYC, a yen-pegged stablecoin. This integration, facilitated by JPYC EX, allows users to convert yen into JPYC and vice versa directly within the wallet at a 1:1 ratio.

Looking toward 2026, the market is expected to diversify into two primary legal frameworks. JPYC operates as an electronic payment method under funds transfer service provider regulations. In contrast, Japan’s three major banks—Mitsubishi UFJ, Mizuho, and Sumitomo Mitsui—are collaborating to launch stablecoins based on trust contracts. These bank-led initiatives aim to facilitate cross-border corporate settlements, with pilot programs already underway involving entities like Mitsubishi Corporation.

As these different models—funds transfer-based and trust-based—enter the market simultaneously, the landscape of Japanese payment infrastructure will likely shift toward specialized use cases for each type of token.