Japan's stablecoin payment ecosystem is moving from pilot projects to commercial reality with two major developments: convenience store operator Lawson planning a yen-denominated stablecoin trial in Tokyo, and payments company Netstars launching a multi-stablecoin merchant service.

Lawson to test yen stablecoin payments

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. On Monday, blockchain company HashPort said 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. 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. This trial follows a growing trend in Japan where traditional retailers are exploring digital payment options.

Lawson is one of Japan's largest convenience store chains with over 14,600 stores nationwide. The company has previously experimented with various digital payment methods, including QR code payments and its own app-based loyalty program. Adding stablecoins would provide customers with another seamless payment option, particularly appealing to tech-savvy consumers and foreign tourists familiar with cryptocurrency.

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.

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. This is a significant advantage for merchants who want to accept cryptocurrency payments without being exposed to volatility or operational burdens.

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. These pilots demonstrated the viability of stablecoin payments in high-traffic retail environments, where transaction speed and reliability are crucial.

Regulatory foundation in Japan

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.

This 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. Japan's approach to stablecoin regulation is one of the most comprehensive globally, providing legal clarity that encourages innovation while protecting consumers.

The Japanese government has been proactive in embracing blockchain technology. Prime Minister Fumio Kishida's administration has promoted web3 policies as part of its economic growth strategy. The Financial Services Agency has worked closely with industry players to create a balanced regulatory environment that fosters innovation without stifling it.

HashPort's role and non-custodial wallets

HashPort, the blockchain company leading the Lawson trial, specializes in enterprise blockchain solutions. Its non-custodial wallet technology allows users to retain full control of their private keys, aligning with the crypto industry's core principle of self-custody. For the Lawson trial, HashPort will integrate its wallet with the store's existing point-of-sale system, enabling seamless transactions without requiring merchants to handle digital assets directly.

Non-custodial wallets are increasingly seen as crucial for mainstream cryptocurrency adoption because they eliminate the risk of exchange hacks or custodial failures. HashPort's approach demonstrates that stablecoin payments can be implemented in a way that balances user autonomy with merchant convenience.

Impact on Japan's retail sector

Japan's retail sector is highly competitive, with convenience stores playing a central role in daily life. The ability to accept stablecoin payments could give merchants a competitive edge, especially in attracting younger consumers who are more familiar with digital currencies. Additionally, Japan has a large inbound tourism market, and stablecoins could provide a convenient payment method for visitors who may not have local bank accounts but hold stablecoins.

The 0.98% merchant fee offered by Netstars is competitive compared to traditional credit card processing fees, which can range from 1.5% to 3.5% in Japan. Lower transaction costs could incentivize more merchants to adopt stablecoin payments, accelerating the shift toward a cashless society. Japan has long been a cash-heavy society, but the COVID-19 pandemic accelerated digital payment adoption. Stablecoins represent the next frontier in this evolution.

Broader implications for stablecoin adoption

The developments in Japan are being watched closely by other countries considering stablecoin regulation. Japan's framework is often cited as a model for balancing innovation with consumer protection. The success of these trials could encourage other Asian markets, such as Singapore and Hong Kong, to pursue similar regulatory paths.

Stablecoins, particularly those pegged to fiat currencies like the yen or dollar, offer the stability needed for everyday transactions while retaining the benefits of blockchain technology: speed, transparency, and low cost. The use of Solana and Polygon networks indicates that scalability is a priority, as these blockchains offer high throughput and low transaction fees essential for retail environments.

JPYC, the yen-denominated stablecoin used in Netstars' service, is particularly significant. It represents a fully regulated digital yen alternative, issued by a registered fund transfer service provider. This gives users confidence that the stablecoin is backed 1:1 by Japanese yen held in trust accounts, reducing counterparty risk.

Future outlook

With regulatory clarity and growing merchant interest, Japan is poised to become a leader in stablecoin payments. The Lawson trial and Netstars launch are just the beginning. Other convenience store chains, supermarkets, and online retailers are likely to follow suit if the pilots prove successful. Moreover, the integration of stablecoins into existing point-of-sale systems without requiring merchants to manage crypto wallets lowers the barrier to entry significantly.

As more wallets and blockchains are added to Netstars' service, the ecosystem will become more accessible to a wider range of users. The company plans to support additional wallets like WalletConnect and Coinbase Wallet, as well as other blockchains such as Ethereum and Avalanche, in future updates. This multi-chain approach ensures that users can transact using their preferred network, enhancing flexibility and adoption.

The Japanese government's proactive stance on digital assets is also evident in its central bank digital currency (CBDC) experiments. While the Bank of Japan has not yet committed to a digital yen, the private sector's stablecoin initiatives are filling the gap and providing real-world use cases that could inform future policy decisions.

In summary, Japan's stablecoin payment sector is rapidly advancing, with concrete trials and commercial launches demonstrating the viability of regulated stablecoins for everyday transactions. The combination of a clear legal framework, innovative companies like HashPort and Netstars, and widespread retail adoption makes Japan a key market to watch in the global stablecoin landscape.

Source: Cointelegraph News