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. This pilot, conducted in collaboration with blockchain company HashPort and telecom group KDDI, marks a significant step in integrating digital currencies into Japan’s retail infrastructure.
HashPort, Lawson, and KDDI Pilot
On Monday, blockchain firm HashPort announced it had signed an agreement with Lawson and 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 approach 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.
Lawson, one of Japan’s three major convenience-store chains with over 14,600 outlets nationwide, has been at the forefront of digital payment adoption. The chain already accepts various cashless methods, including credit cards, transportation IC cards, and QR code payments. The stablecoin trial represents a natural extension of this strategy, potentially paving the way for broader acceptance of blockchain-based payments in everyday commerce. HashPort, known for its enterprise-grade blockchain solutions, brings expertise in digital asset custody and wallet technology. KDDI, a major telecommunications provider, adds its extensive network infrastructure and experience with mobile payment services.
Netstars Launches Stablecoin Pay
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 stated that this removes the need to hold crypto or manage exchange rates.
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 tests provided crucial data on transaction speeds, user experience, and merchant readiness. The Haneda Airport trial, in particular, exposed international travelers to stablecoin payments in a high-traffic environment, demonstrating the potential for cross-border use cases. The Himeji test, focusing on a niche retail segment, showed how stablecoins could be applied to collectibles and high-value items.
Regulatory Framework Supporting Stablecoin Growth
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). This proactive regulatory approach has positioned Japan as a global leader in stablecoin governance, providing clarity that fosters innovation while protecting consumers.
The framework was followed by regulatory approval for USDC distribution in March 2025, allowing Circle’s stablecoin to be legally issued and circulated in Japan. That August, JPYC received registration as a fund transfer service provider, before the stablecoin was officially launched in October 2025. JPYC, a yen-pegged stablecoin issued by JPYC Inc., is designed to comply fully with Japanese regulations and is backed by yen deposits held at trust banks. Its registration marked a milestone as the first domestic stablecoin to achieve full regulatory compliance under the new regime.
These developments have created a fertile environment for stablecoin adoption. Unlike in many jurisdictions where stablecoins operate in a legal gray area, Japan offers a clear path for issuance, distribution, and use. This clarity has attracted both domestic and international players. For example, Circle partnered with local firms to distribute USDC, while Binance Japan has explored stablecoin services. The FSA continues to refine rules, including guidelines on reserve management and anti-money laundering measures, ensuring the ecosystem remains robust.
Implications for Retail and Payments
The Lawson trial and Netstars launch signify a shift from theoretical use cases to practical retail applications. For consumers, stablecoins offer a digital alternative to cash that can be transferred instantly with low fees. For merchants, the ability to accept dollar-denominated stablecoins while settling in yen eliminates currency risk and simplifies accounting. This is particularly beneficial for businesses that serve international tourists or engage in cross-border e-commerce. Japan’s tourism sector, which saw a record 36 million visitors in 2025, stands to benefit from payment methods familiar to travelers from crypto-friendly regions.
Moreover, stablecoins could help reduce the cost of payment processing. Traditional card networks charge fees averaging 2-3% in Japan, whereas Netstars’ 0.98% fee is significantly lower. Even after accounting for wallet and blockchain transaction costs, the savings could be substantial for merchants with high transaction volumes. Additionally, stablecoin payments settle almost instantly, improving cash flow compared to credit card settlements that can take days.
The technology also opens doors to programmable payments. Smart contracts could enable automatic discounts, loyalty rewards, or subscription payments without manual intervention. For instance, a Lawson customer could set up a recurring stablecoin payment for daily coffee purchases, with the smart contract automatically applying a loyalty discount after a certain number of purchases. Such innovations could enhance customer engagement and operational efficiency.
Technical and Operational Considerations
While the benefits are promising, integration requires careful planning. HashPort’s non-custodial wallet, used in the Lawson trial, ensures that customers retain control of their private keys, reducing the risk of platform hacks. However, it also places responsibility on users to secure their keys, which can be a barrier for mainstream adoption. Netstars’ approach, using existing payment terminals, minimizes upfront investment for merchants, but compatibility with various point-of-sale systems must be verified. The choice of Solana and Polygon networks reflects a focus on low transaction fees and high throughput, essential for retail environments where transactions must be processed in seconds.
Another challenge is volatility—though stablecoins are pegged to fiat currencies, depegging events can occur during market stress. Japan’s regulatory framework requires stablecoin issuers to maintain adequate reserves and undergo regular audits, mitigating this risk. Nonetheless, merchants and consumers must have confidence in the stability mechanism. The JPYC stablecoin, for example, is fully backed by yen deposits and subject to monthly attestations, providing transparency.
Security also remains paramount. In 2024, Japan experienced several high-profile crypto hacks, highlighting the need for robust cybersecurity measures. Both HashPort and Netstars have emphasized their adherence to best practices, including multi-signature wallets, cold storage, and regular penetration testing. The FSA’s oversight adds an additional layer of protection, as registered entities must comply with stringent operational standards.
Broader Context and Industry Trends
Japan’s stablecoin push is part of a global trend. In the United States, regulatory uncertainty has slowed adoption, though the introduction of the Lummis-Gillibrand Responsible Financial Innovation Act and efforts by the Securities and Exchange Commission to clarify rules have provided some direction. In the European Union, the Markets in Crypto-Assets (MiCA) regulation, effective June 2024, established a comprehensive framework for stablecoins, leading to issuances like EUR Coinvertible (EURCV) by Societe Generale. Asia, meanwhile, has seen diverse approaches: Singapore’s Monetary Authority has granted licenses to stablecoin issuers under its Payment Services Act, while Hong Kong is developing its own regime. Japan’s early and clear regulatory action gives it a competitive edge in attracting businesses and talent.
The country’s experience with digital payments also provides a strong foundation. Japan has long been a cash-heavy society, but the COVID-19 pandemic accelerated digital payment adoption. Contactless payments, QR codes, and mobile wallets became commonplace. Stablecoins build on this infrastructure, offering a decentralized alternative that does not rely on traditional banking rails. This could be particularly appealing for unbanked or underbanked populations, although Japan’s high banking penetration means that use case is less pronounced than in some emerging markets.
Corporate adoption is also growing. In April 2026, a Japanese lender launched Bitcoin-backed loans of up to $6.2 million, reflecting increasing institutional comfort with digital assets. Major corporations like SBI Holdings, Mitsubishi UFJ Financial Group, and Nomura have invested in crypto-related ventures. Stablecoins, being less volatile than Bitcoin, are seen as a gateway for conservative businesses to enter the cryptospace.
Future Outlook
The Lawson trial is expected to run through August 2026, after which HashPort, KDDI, and Lawson will release a report detailing findings and recommendations for scaling. If successful, the pilot could expand to other Lawson locations and potentially to other convenience store chains, supermarkets, and restaurants. Netstars, meanwhile, aims to onboard hundreds of merchants by the end of the year, targeting industries such as retail, hospitality, and online services. The company also plans to support additional stablecoins, including those pegged to other fiat currencies like the euro and Singapore dollar, as well as native tokens from major blockchains.
Interoperability between different stablecoin networks will be key. Japan’s FSA has encouraged collaboration among licensed platforms to create a seamless payment ecosystem. The Japan Cryptocurrency Business Association (JCBA) has been working on standardizing APIs and settlement procedures. Such efforts could eventually enable stablecoin payments to be accepted across all major retail points, similar to how credit cards work today.
Consumer education remains a hurdle. While crypto-savvy early adopters may embrace stablecoins, the broader public needs to understand how to acquire, store, and use them. Wallets like MetaMask are user-friendly but still require some technical knowledge. Partnerships with banks and telecom operators can help bridge this gap. For instance, KDDI could integrate stablecoin wallets into its au mobile app, making them accessible to millions of users. Similarly, Lawson could display QR codes at checkout that direct customers to simple onboarding flows.
The success of these initiatives will depend on seamless user experience, robust infrastructure, and continued regulatory support. Japan has demonstrated a willingness to adapt its legal framework to accommodate innovation, and the private sector is responding with practical applications. As stablecoins move from pilots to production, they have the potential to reshape not only how Japanese consumers pay but also how businesses manage their finances. The combination of a clear regulatory regime, advanced technology, and strong industry partnerships positions Japan as a global laboratory for stablecoin-based payments. The world will be watching as Lawson and Netstars take these next steps.
Source:Cointelegraph News