Japanese convenience-store operator Lawson plans to test yen-denominated stablecoin payments at a Tokyo location in August, examining whether stablecoin payments can work inside a standard convenience store checkout flow. The trial marks a milestone in Japan’s push to integrate digital assets into mainstream retail, building on a regulatory framework that has steadily legitimized stablecoins since mid-2023.
Blockchain company HashPort announced on Monday that it had signed an agreement with Lawson and telecom group KDDI to conduct the trial at the Lawson Takanawa Gateway City store. Participants will use HashPort's non-custodial wallet, while the store will process payments through the company's point-of-sale system without needing to open or manage crypto wallets. This design shields merchants from the operational complexity of handling digital assets directly, allowing them to focus on their core business.
The pilot aims to explore how stablecoin payments can be integrated into Japan's existing retail infrastructure while shielding merchants from much of the operational complexity associated with accepting digital assets. The companies plan to assess integration requirements, checkout operations, payment processing times, and wallet usability before considering broader applications. If successful, the trial could pave the way for stablecoin adoption across thousands of Lawson stores nationwide, as well as other retail chains.
Lawson operates more than 14,000 convenience stores across Japan and has been at the forefront of digital payment adoption. The company already accepts various digital wallets and contactless payments, but stablecoins represent a new frontier. The yen-denominated stablecoin used in the trial will be issued by a regulated entity under Japan’s Payment Services Act, ensuring compliance with strict custody and transparency requirements.
Netstars launches multi-stablecoin merchant service
Separately, Japanese payments company Netstars launched Stablecoin Pay on Monday, opening applications from merchants seeking to accept multiple stablecoins as payment options. The service initially supports USDC, USDT, and the yen-denominated JPYC through the Solana and Polygon networks, with MetaMask as the supported wallet. Netstars set the merchant payment fee at 0.98% and said it plans to add more wallets and blockchains, including Ethereum and other layer-2 solutions.
With the service, merchants can use existing payment terminals in most cases and handle product pricing, sales records, and settlement in yen, even when customers pay with dollar-denominated stablecoins. Netstars said this removes the need to hold crypto or manage exchange rates, addressing a major barrier for traditional retailers. The company also emphasized that stablecoins enable near-instant finality compared to conventional payment rails, which can take days to settle.
The commercial launch follows Netstars trials involving USDC payments at Tokyo's Haneda Airport from January to February and at a trading-card store in Himeji from April. Those pilots demonstrated that stablecoins could be processed reliably in high-traffic environments while maintaining low costs. The positive results encouraged Netstars to open the service to all merchants, starting with small and medium-sized businesses looking to differentiate their payment offerings.
The move from limited pilots to a merchant-facing service comes as Japanese companies build more consumer-facing products around the country's regulated stablecoin market. On June 1, 2023, Japan introduced a dedicated framework for stablecoins when amendments to the Payment Services Act and related laws took effect. The rules created regulatory categories for fiat-linked stablecoins and require businesses acting as intermediaries to register with the Financial Services Agency (FSA).
The framework was followed by regulatory approval for USDC distribution in March 2025 and by JPYC's registration as a fund transfer service provider that August, before the stablecoin was launched in October. JPYC is a yen-pegged stablecoin issued by Japan’s JPYC Corporation, which became a licensed entity under the new regime. Its launch gave merchants and consumers a fully compliant domestic stablecoin option, reducing reliance on foreign-issued tokens.
Netstars’ service is significant because it bundles multiple stablecoins through a single integration, providing flexibility for customers who may hold different denominations. The 0.98% fee is competitive with credit card processing rates in Japan, which often range from 1.5% to 3.5%. By offering lower fees and faster settlement, stablecoin payments could appeal to high-volume retailers with thin margins, such as convenience stores and supermarkets.
The Japanese government has expressed interest in promoting digital payments as part of its broader economic strategy. The Society 5.0 initiative, which aims to integrate digital technologies into every sector, includes goals for cashless transactions to reach 40% of all payments by 2025. Stablecoins, as a programmable and low-cost payment rail, align with these objectives and could help bridge the gap for the unbanked and underbanked populations.
Industry observers note that Japan’s approach to stablecoin regulation is among the most thorough in the world. Unlike some jurisdictions that have taken a wait-and-see stance, Japan proactively defined rules for reserve requirements, redemption rights, and capital adequacy. This clarity has attracted international stablecoin issuers, such as Circle’s USDC, which received FSA approval to distribute in the country after a rigorous application process.
Other major economies have also experimented with stablecoin frameworks. The European Union’s Markets in Crypto-Assets (MiCA) regulation, which came into force in June 2024, includes provisions for e-money tokens and asset-referenced tokens. Meanwhile, Singapore and Hong Kong have introduced licensing regimes for stablecoin issuers. Japan’s framework, however, was the first to address stablecoins as a distinct asset class under existing payments legislation, benefiting from its experience with the Mt. Gox incident and subsequent crypto regulations.
In addition to Lawson and Netstars, other Japanese firms are exploring stablecoin use cases. In April, Japanese lender SBI Holdings announced plans to issue its own yen stablecoin through its subsidiary SBI VC Trade. Similarly, Mizuho Financial Group has been piloting a stablecoin for interbank settlements. These initiatives indicate that stablecoins are moving beyond speculative trading into real-world applications such as payroll, remittances, and e-commerce.
The Lawson trial and Netstars launch also highlight the role of telecom companies in Japan’s digital asset infrastructure. KDDI, one of the country’s largest mobile network operators, has been investing in Web3 and blockchain services. Its participation in the Lawson trial suggests that stablecoins could eventually be integrated into mobile payment ecosystems, allowing users to top up their digital wallets via their phone bills or mobile banking apps.
HashPort, the blockchain company behind the Lawson trial, is known for developing non-custodial wallet solutions that prioritize user control and security. Its wallet architecture uses multi-party computation (MPC) to split private keys across multiple devices, reducing the risk of single points of failure. The company has also partnered with regional banks to offer custody services for corporate clients, positioning itself as a bridge between traditional finance and decentralized technology.
The broader context of Japan’s stablecoin adoption is its declining cash usage, accelerated by the COVID-19 pandemic. While Japan has long been a cash-dominated society, the share of cashless payments rose from 20% in 2019 to over 36% in 2023. Stablecoins could accelerate this trend by enabling faster and cheaper cross-border transactions, especially for Japanese tourists and expatriates who frequently travel abroad.
Yet challenges remain. Consumer awareness of stablecoins is relatively low, and many are wary of digital assets due to past hacks and volatility in the broader crypto market. Educational campaigns will be essential to build trust. Additionally, merchants must invest in POS terminal upgrades or software integrations, which can be a barrier for smaller shops. The Netstars service addresses this by allowing most existing terminals to work with minimal modifications.
The regulatory environment continues to evolve. In December 2025, the FSA issued guidelines clarifying that stablecoin intermediaries must segregate customer funds from corporate assets and maintain liquidity buffers equal to the face value of issued tokens. These measures are designed to prevent the kind of reserve shortfalls that led to the collapse of TerraUSD in 2022. Japan’s proactive stance has made its stablecoin market one of the safest for institutional participation.
Looking ahead, the success of the Lawson trial could inspire other convenience store chains such as 7-Eleven Japan and FamilyMart to launch similar pilots. If stablecoin payments prove viable, they might eventually replace some credit card transactions, which carry higher interchange fees. The Netstars service also has the potential to expand to other networks, including Bitcoin Lightning Network for faster microtransactions, though that would require additional technical development.
In summary, the combination of a real-world retail trial by Lawson and a commercial service from Netstars marks a turning point for stablecoins in Japan. The country’s careful regulatory approach has created a fertile environment for innovation, attracting both domestic and international players. As more businesses and consumers become comfortable with digital yen and dollar-pegged tokens, stablecoins could become a standard payment method in Japan’s increasingly digital economy.
Source:Cointelegraph News