Osaka Prefecture announced on August 26 that it has selected four projects as recipients of the “Osaka Prefecture Pioneering Financial Market Formation Support Program Subsidy,” jointly implemented with the city of Osaka: digital asset wallet provider HashPort, Myna Wallet, Osaka Metropolitan University spin-off startup Mi&T, and SBI XDC Network APAC. Each company will receive between \u00a51.25 million and \u00a510 million (approximately $7,900 to $63,000) to cover system development costs and other expenses.<\/p>\n
Of the four selected projects, three\u2014HashPort, Myna Wallet, and Mi&T\u2014will focus on proof-of-concept trials for payments using the yen-denominated stablecoin “JPYC” and the U.S. dollar-denominated “USDC.” The remaining project, SBI XDC Network APAC, will test a mechanism for completing procedures involved in used auto parts export transactions entirely on a blockchain.<\/p>\n
HashPort plans to accept JPYC and USDC payments at retail stores and restaurants within the prefecture from January to March 2027, testing a system that settles payments to merchants in Japanese yen. The trial period is expected to last at least one week. According to Osaka Prefecture’s list of approved projects, the company will also test “escrow-type payments” on e-commerce sites, where a third party temporarily holds funds and transfers them to the seller once conditions are met. The goal is to validate an integrated platform covering everything from payment to settlement, with an eye toward business expansion within the prefecture.<\/p>\n
HashPort has already rebranded the “EXPO2025 Digital Wallet,” offered during the Osaka-Kansai Expo, into the “HashPort Wallet” following the Expo’s conclusion, adding support for stablecoins and other assets. The trial will leverage insights gained from the Expo for real-world in-store payment verification.<\/p>\n
Myna Wallet plans to collaborate with Sumitomo Mitsui Card to demonstrate JPYC and USDC payments using the company’s “stera terminal” payment devices. A key feature is combining stablecoin payments with existing card payment infrastructure. Mi&T will test in-store JPYC payments at restaurants and retail stores around Osaka Metropolitan University, using the commercial district surrounding the campus as a testing ground as a university-launched venture.<\/p>\n
SBI XDC Network APAC, in partnership with TOPPAN and others, plans to conduct a demonstration targeting used auto parts exporters in Osaka Prefecture, carrying out the entire chain of procedures\u2014from counterparty verification to export factoring and payment collection\u2014on a blockchain. The project is expected to streamline document processing and accelerate monetization in export transactions.<\/p>\n
Current state of the stablecoin market and Osaka’s ambitions<\/p>\n
Stablecoins are digital currencies backed by deposits or short-term government bonds, designed to maintain a stable 1:1 value peg with fiat currency. They enable instant settlement and are characterized by significantly lower transaction fees compared to traditional credit cards. The global market has reached $300 billion (approximately \u00a547.8 trillion), but U.S. dollar-denominated stablecoins account for the vast majority, and usage in Japan remains limited.<\/p>\n
Private-sector initiatives are beginning to emerge in Japan. Lawson has launched a stablecoin payment pilot limited to affiliated parties at two stores in Tokyo. The “EXPO2025 Digital Wallet,” used for payments and other functions during the Osaka-Kansai Expo, also allowed tokens to be exchanged for USDC. Osaka Prefecture aims to leverage the digital payment experience cultivated at the Expo to expand everyday stablecoin usage at physical stores and e-commerce sites within the prefecture.<\/p>\n
At a press conference on August 26, Governor Hirofumi Yoshimura noted that stablecoin payments could become a mainstream payment method in the future, and expressed his intention to pursue social implementation starting from Osaka.<\/p>\n
Overview of demonstration projects<\/p>\n
OperatorDemonstration detailsPartnerHashPortJPYC\/USDC payments at prefecture retail stores and restaurants; escrow-type payments for e-commerce\u2014Myna WalletJPYC\/USDC payments using stera terminalSumitomo Mitsui CardMi&TJPYC payments at restaurants and retail stores around Osaka Metropolitan University\u2014SBI XDC Network APACBlockchain-based processing from counterparty verification to payment collection for used auto parts exportsTOPPAN<\/p>\n
Note: HashPort’s demonstration period is expected to span at least one week between January and March 2027. Myna Wallet and Mi&T plan to conduct demonstrations during fiscal 2026.<\/p>\n
The subsidy is part of the “Pioneering Financial Market Formation Support Program,” jointly implemented by Osaka Prefecture and the city of Osaka. The program aims to establish a market for advanced financial services within the prefecture and encourage the clustering of related industries. Through stablecoin payment demonstrations, the program will evaluate merchant-side operational burdens, consumer convenience, and cost differences compared to existing payment methods.<\/p>\n
The results of these demonstrations are also expected to contribute to identifying issues for the practical application of stablecoins, which became issuable in Japan under the revised Payment Services Act that took effect in June 2023. Osaka Prefecture aims to position the Kansai region as a fintech industry hub by bridging the digital payment assets built during the Expo to private-sector demonstration projects.<\/p>\n","protected":false},"excerpt":{"rendered":"Osaka Prefecture announced on August 26 that it has selected four projects as recipients of the “Osaka Prefecture…\n","protected":false},"author":2,"featured_media":81467,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[22819,4932,8,22820,41542,52151,85,5680,15339,44555,52152,52154,34557,52153],"class_list":["post-81466","post","type-post","status-publish","format-standard","has-post-thumbnail","category-osaka","tag-hashport","tag-hirofumi-yoshimura","tag-japan","tag-jpyc","tag-mit","tag-myna-wallet","tag-osaka","tag-osaka-metropolitan-university","tag-osaka-prefecture","tag-osaka-kansai-expo","tag-sbi-xdc-network-apac","tag-sumitomo-mitsui-card","tag-toppan","tag-usdc"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts\/81466","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/comments?post=81466"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts\/81466\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/media\/81467"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/media?parent=81466"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/categories?post=81466"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/tags?post=81466"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}