Partnership Overview

On January 14, 2026, Dentsu Soken Inc., a major Japanese IT services company, announced a strategic partnership with UK-based fintech firm Quant Network. The collaboration aims to pioneer the development of Japan's stablecoin market by enabling "programmable payments" and modernizing payment infrastructure for Japanese financial institutions.

Programmable payments refer to automated transaction systems that execute based on predetermined conditions. This technology allows processes that previously required manual intervention, such as automatic payment upon delivery confirmation, to be fully automated through smart contract-like functionality.

Complementary Strengths

Dentsu Soken's Expertise

Dentsu Soken has an extensive track record in developing mission-critical payment and clearing systems for Japan's leading financial institutions. The company is best known for developing "Stream-R™," a payment management system compatible with BOJ-NET (Bank of Japan Financial Network System), the nation's real-time gross settlement infrastructure. Their portfolio also includes global core banking systems, internet banking platforms, SWIFT integration, and research into decentralized identity (DID) and cryptocurrency wallets.

Quant Network's Technology

Headquartered in London, Quant Network provides programmable payment and orchestration platforms for interbank transactions. The company has established credibility through involvement in major regulatory projects, including the Bank for International Settlements' "Project Rosalind," European Central Bank pilot programs, the UK's "Regulated Liability Network (RLN)," and the "Great Britain Tokenised Deposit (GBTD)" initiative.

Quant's technology is ISO 20022 native, ensuring seamless compatibility with existing financial messaging standards used globally.

The "Orchestration" Technology

At the heart of this partnership is "orchestration" technology, a system that coordinates multiple platforms and services to automate complex workflows. This enables financial institutions to introduce tokenized deposits and bank-issued stablecoins without extensive modifications to their existing core systems.

The partnership will focus on four key areas:

  1. Implementing programmable payments and orchestration capabilities
  2. Developing logic for tokenized deposits and bank-issued stablecoins, including conditional settlements, ledger synchronization, and audit compliance
  3. Automating liquidity and treasury management
  4. Ensuring interoperability, technical demonstrations, and Japan-specific localization

Japan's Stablecoin Landscape

Regulatory Framework

Japan became one of the first countries in the world to establish a clear legal framework for stablecoins when the amended Payment Services Act took effect in June 2023. This legislation defines fiat-backed stablecoins as "electronic payment instruments" and restricts their issuance to banks, money transfer service providers, and trust companies. The law mandates full redemption at face value, backing by safe assets (yen deposits and government bonds), and segregation of reserve assets.

The "Year of Stablecoins" in 2025

In August 2025, fintech startup JPYC completed its registration as a money transfer business with Japan's Financial Services Agency (FSA), becoming the country's first licensed stablecoin issuer. JPYC launched its yen-pegged stablecoin in October 2025, backed 100% by domestic bank deposits and Japanese Government Bonds (JGBs), maintaining a 1:1 peg with the yen.

In November 2025, the FSA also approved a pilot program for Japan's three megabanks, Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho, to jointly issue stablecoins. Under this program, Mitsubishi UFJ Trust and Banking Corporation will serve as the trustee, issuing stablecoins for cross-border payments testing with Mitsubishi Corporation.

2025 Payment Services Act Amendment

Additional reforms are on the horizon. A new amendment to the Payment Services Act, promulgated in June 2025 and scheduled for implementation in 2026, introduces a new intermediary category called "Electronic Payment Instrument and Crypto-asset Service Intermediary Business," revises the definition of trust-type stablecoins, and adds domestic asset custody requirements for crypto-asset exchanges.

Global Competition

US GENIUS Act

In July 2025, the United States enacted the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act), establishing comprehensive rules for stablecoin issuers regarding licensing and reserve requirements. This regulatory clarity is expected to accelerate US dollar stablecoin adoption.

Currently, the global stablecoin market exceeds $200 billion, with over 99% dominated by USD-pegged tokens like USDT and USDC. The proliferation of yen-denominated stablecoins could diversify currency options in Asian markets and strengthen Japan's competitiveness in digital finance.

European and Asian Developments

The European Union's MiCA (Markets in Crypto-Assets Regulation) framework came into effect in June 2024, with more than 10 issuers, including Circle, receiving approval for compliant stablecoin offerings. Singapore and Hong Kong have also been developing similar regulatory frameworks.

Future Outlook

The Dentsu Soken-Quant partnership is expected to accelerate the tokenization of Japan's financial ecosystem. The orchestration technology's ability to bridge legacy systems with new digital asset infrastructure significantly lowers barriers to entry for Japanese financial institutions that have traditionally been cautious about digital transformation.

Japan Post Bank has also announced plans to explore "tokenized deposits" by fiscal year 2026, signaling that digital asset adoption is expanding beyond megabanks to a broader range of financial institutions.

Japan's early regulatory leadership in stablecoins positions it advantageously for the future. The challenge now lies in translating this framework into practical use cases and real-world implementation. The digitization of payments represents more than mere efficiency gains, programmable money has the potential to enable entirely new business models and financial services.

Japan is making significant strides in stablecoin adoption and digital currency regulation. How is your country approaching digital currencies and stablecoins? We'd love to hear about cashless payment trends, government initiatives, or financial institution efforts in your region. Share your thoughts and experiences!

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