Three Japanese Banks Start Stablecoin Experiment

Japan has been moving toward allowing stablecoins. Following the collapse of multibillion-dollar algorithmic stablecoin issuer Terra in 2022, parliament passed a set of stablecoin-specific rules focused on investor protection. The government also plans to allow stablecoins issued outside the country to be listed on local exchanges. Additionally, new rules to be implemented in June will allow Japanese exchanges to apply for a special license to trade stablecoins.