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:
- Implementing programmable payments and orchestration capabilities
- Developing logic for tokenized deposits and bank-issued stablecoins, including conditional settlements, ledger synchronization, and audit compliance
- Automating liquidity and treasury management
- 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. The technical infrastructure is being provided by Progmat, a fintech venture backed by the megabanks.
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!
References
- https://www.dentsusoken.com/news/release/2026/0114.html
- https://crypto-times.jp/news-dentsu-soken-partners-with-quant/
- https://www.nikkei.com/article/DGXZQOUB301QG0Q5A031C2000000/
- https://toyokeizai.net/articles/-/926475
- https://kpmg.com/jp/ja/home/insights/2025/10/web3-blockchain-10.html
- https://bravenewcoin.com/insights/japan-set-to-approve-first-yen-backed-stablecoin-this-fall-marking-historic-shift-in-digital-currency-policy
Reactions in Japan
So Dentsu Soken is partnering with Quant. Japanese financial institutions hate modifying their existing systems, so being able to implement this through orchestration technology while keeping legacy systems intact is huge. With megabank stablecoin pilots already underway, 2026 looks like things will really accelerate.
The partnership with Quant Network, which has participated in BIS's Project Rosalind, looks promising. Being ISO 20022 native and aligned with global standards is a big plus. It's important that Japan doesn't isolate itself with proprietary specifications.
Honestly, from the frontline perspective, it's like 'another new system to implement?' The existing payment infrastructure works perfectly fine. I'm skeptical about whether this is really necessary.
Programmable payments really shine in B2B transactions. Automatic payment upon delivery confirmation, conditional escrow—things you can't do with current bank transfers become possible.
Yen stablecoin adoption directly impacts Japan's financial market competitiveness. In a market where USDT and USDC hold near monopoly, having yen-denominated options is significant.
Another crypto-related story. How much of this will actually be implemented? Even JPYC is limited to 1 million yen as a Type II money transfer service, so it can't be used for B2B payments. All I see is idealistic talk leading nowhere.
Between the three megabanks' pilot and this partnership, 2026 looks like Japan's digital money year. Though it'll probably still take time before actual services launch.
Japan established stablecoin legislation ahead of the world in 2023, yet actual issuance only started in late 2025. Regulations may be advanced, but real-world implementation is lagging.
It's notable that not just megabanks but Japan Post Bank is also moving on tokenized deposits. Regional banks need to keep up. But we lack both talent and expertise...
The Dentsu Soken × Quant partnership seems to mainly target B2B enterprise use cases. Individual users will probably stay in JPYC territory. The market segmentation is becoming clearer.
Dentsu Soken, with their Stream-R™ expertise, definitely has the know-how for BOJ-NET integration. Combined with Quant's technology, full-scale interbank stablecoin settlement becomes a realistic goal.
The key to orchestration technology is leveraging existing systems. Japanese financial institutions are full of legacy systems, so this could be the deciding factor for adoption. Full system overhauls just aren't realistic.
Cross-border payments going from several days to instant is revolutionary. Global companies like Mitsubishi Corporation will benefit greatly. The fee savings alone would have significant impact.
Honestly, 'stablecoin' doesn't really register with me. It's not like my salary will be paid in crypto. Feels like something that doesn't concern ordinary people.
The distinction between CBDC (digital yen) and stablecoins is still unclear. BOJ is advancing its research, but private-sector stablecoins seem poised to take the lead.
Trust-type stablecoins have no transfer limits, making them usable for large B2B payments. It's a different playing field from JPYC—they'll likely complement each other.
From Singapore here. I knew Japan was ahead on stablecoin regulations, but it's great to see actual adoption finally accelerating. Hong Kong is also developing its framework in Asia, so competition is heating up.
Quant Network is well-regarded here in the UK. With their track record with the Bank of England and ECB, their expansion into Japan looks promising. Cross-border payment efficiency is a global challenge after all.
German banker here. MiCA just started in the EU, but Japan had legislation two years earlier. However, adoption speed isn't determined by regulation alone. Creating use cases is key.
In the US, the GENIUS Act just passed and dollar stablecoins remain dominant. Yen stablecoins are an interesting initiative, but breaking USDT and USDC's stronghold will be difficult.
Commenting from France. Japan's 'orchestration' approach is smart. Introducing new technology while leveraging existing systems is effective for getting conservative financial institutions on board.
From Korea. I had the impression Japan was strict on crypto regulations, but they're making steady progress on stablecoins. Korea is advancing CBDC research, but private stablecoins are still in early stages.
From Australia. Instant cross-border payments would be a major benefit for import/export businesses. If yen stablecoins spread across Asia-Pacific, we'd have more transaction options.
From Brazil. Reducing remittance costs is a critical issue for emerging economies. If Japan's stablecoin technology improves international transfers, it's great news for workers and their families worldwide.
Trader from Hong Kong. Hong Kong also enacted stablecoin regulations in August 2025. Looks like Japan and Hong Kong will lead Asia's stablecoin market together. We need both competition and cooperation.
From Poland. From an EU perspective under MiCA, Japan's approach is instructive. Balancing regulation and implementation is challenging, but Japan seems to be setting a good model.
Working at a NY investment bank. Honestly, I'm skeptical about how much market share yen stablecoins can capture internationally. The dollar's position won't be shaken anytime soon.
From China. Digital yuan (e-CNY) pilots are progressing, but international interoperability remains a challenge. Japan's private-sector-led, open stablecoin approach is an interesting strategy.
Japanese expat in Singapore. Every time I send money abroad, fees and delays are frustrating. I hope JPYC and megabank stablecoins will make remittances to Japan smoother.
From Mexico. Surprised to learn Japan's stablecoin legislation in 2023 was a world first. There's high interest in crypto in Latin America, but regulations haven't caught up yet.
Crypto media editor here. Japan's stablecoin market is developing in a regulation-driven way, but the next focus is how far DeFi integration will go. Watching the Ethereum and Polygon deployments closely.