Japan's Financial Services Agency (FSA) has initiated a public consultation on the types of bonds that can be used as reserve assets for stablecoins, with feedback due by February 27, 2026. This move is part of the implementation of the 2025 amendments to the Payment Services Act, which aim to clarify compliance standards for yen-pegged stablecoins issued through trust structures. The draft proposal suggests limiting eligible collateral to high-credit foreign-issued bonds with a credit risk rating of 1–2 or higher, and issuers must have outstanding bonds totaling at least 100 trillion yen (approximately $648 billion). Additionally, the FSA is enhancing disclosure and risk management requirements for banks and their subsidiaries involved in crypto intermediary activities, and introducing extra compliance checks for foreign stablecoins.