US Outpaces Japan in Stablecoin Adoption Despite Early Regulations
The US is gaining momentum in stablecoin adoption after passing the GENIUS Act. Japan introduced the world’s first stablecoin regulation under its 2023 Payment Services Act amendment. Yet, real-world utility and stablecoin adoption in Japan remain muted. Under Japan’s stablecoin regulation, only licensed banks and money transfer agents can issue tokens, limiting market activity. By contrast, the US GENIUS Act allows both banks and federally chartered non-bank firms to issue stablecoins under reserve and compliance standards. This open market approach boosts stablecoin adoption projections in the US.
Japan’s infrastructure-first mindset still positions it for future competition. Local issuers JPYC and Monex Group plan to launch fully collateralized yen stablecoins backed one-to-one by bank deposits and government bonds this fall. Meanwhile, partnerships between Startale Group, SBI, Circle (USDC) and Ripple (XRP) are building platforms for tokenized stocks, programmable treasuries and cross-border settlements. Traders should watch evolving stablecoin regulation and new yen tokens for potential market shifts and trading opportunities.
Bullish
The US GENIUS Act’s broad issuance rules signal a bullish outlook for the stablecoin market. By allowing both banks and non-bank firms to issue tokens under clear reserve standards, the US is poised to attract new participants and liquidity. This change mirrors past regulatory clarity events—such as the acceptance of USDC—that led to rapid growth in dollar stablecoins. Japan’s infrastructure-first stablecoin regulation offers long-term benefits but has yet to spark immediate adoption. As JPYC and Monex prepare yen-pegged tokens and partnerships drive tokenized finance, both markets stand to gain. In the short term, we expect increased trading volumes in US stablecoins; in the long term, competitive pressure may expand global stablecoin use and cross-border flows.