Japan EPI three-type architecture · trust type / bank type / funds-transfer-operator type overview

Wiki route

This entry sits under fintech index. Read it with Japan Financial Regulation — Legal Framework for Tokens, Crypto Assets, and Payments for adjacent context and Three-Layer Structure of Japan's Stablecoin Regulatory Regime (JPYC, USDC, Project Pax) for the broader system boundary.

[!info] TL;DR Japan’s revision of the “Payment Services Act” (2023) built the world’s most nuanced stablecoin framework —— the EPI (Electronic Payment Instrument) three-type architecture: trust type (Progmat XJPY) / bank type (Minna Bank + Fukuoka FG) / funds-transfer-operator type (JPYC). The three types differ greatly in regulatory burden, flexibility, and circulation restrictions. Japan is the world’s first major economy to define the legal status of stablecoins in explicit terms (2 years ahead of the GENIUS Act).

Key facts

• The “Payment Services Act” revision passed 2023 / came into force 2023-06 ^•
• Approximately 2 years ahead of the GENIUS Act ^•
• The Progmat trust type is designed to be non-MUFG-controlled (diversification of the single largest shareholder 49% + governance 51%) ^•
• JPYC is Japan’s only funds-transfer-operator-type SC holder ^•
• JPYC 2026-Q1 circulation 21 億円 + 6 万 holders + 2.6 -fold growth in 3 months ^•
• SBI Circle Holdings established 2025-08 · 50/50 equal investment · exclusive Japan distribution of USDC ^•
• Project Pax = a cross-border SC project of Japan’s three megabanks + Datachain · solves SWIFT compatibility only ^•
• Circulation cap of the funds-transfer-operator type: ¥100 万 / transaction (in part) ^•

Mechanism / How it works

EPI three-type comparison:

Trust type (Progmat XJPY): a joint venture of the three megabanks Mitsubishi UFJ + Sumitomo Mitsui + Mizuho + Datachain, designed to be non-MUFG-controlled (diversification of the single largest shareholder 49% + governance 51%), targeting B2B large-ticket funds. Bank type (Minna Bank): Fukuoka FG / Minna Bank + the Solana route, targeting bank-customer retail. Funds-transfer-operator type (JPYC): led by Noritaka Okabe, Japan’s only funds-transfer-operator-type SC holder, 2.6 -fold growth in 3 months.

Origin & evolution

The 2017 “Payment Services Act” revision defined “virtual currency” for the first time. The 2019-04 revised Payment Services Act introduced the concept of “crypto-asset.” The 2022-06 passage of the revision bill introduced the EPI three-type framework. With its 2023-06 entry into force, Japan became the world’s first major economy to define the legal status of stablecoins in explicit terms. The 2025-08 establishment of SBI Circle Holdings changed the landscape: with exclusive Japan distribution of USDC, it forms the 4 camp together with JPYC / Progmat / Minna Bank; for details see Japan SC 4 -camp comparison · under the §501(d) lens, SBI Circle = #1. For an overview of Japan’s VASPs, see Domestic Crypto-Asset VASP Regulatory Timeline (2014–2026).

Related

• Wiki Index
• Japan SC 4 -camp comparison · under the §501(d) lens, SBI Circle = #1
• Three-Layer Structure of Japan's Stablecoin Regulatory Regime (JPYC, USDC, Project Pax)
• Japan trust-type SC architecture
• GENIUS Act §501

Sources