Japanese banks prepare to launch stablecoins

New law expected to spur innovation in payments

20230531N yen and green line

Stablecoins are cryptocurrencies backed by such assets as the yen. © Reuters

KEITA SEKIGUCHI, Nikkei fintech editor, and NATSUMI IWATA, Nikkei staff writer

TOKYO -- Japanese banks small and large are on track to start issuing stablecoins this year under legislation taking effect Thursday.

Stablecoins -- cryptocurrencies pegged to legal tender, a commodity, or another underlying asset -- are designed to buffer against major fluctuations in value. Examples include Tether and USD Coin.

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