Japan's FSA seeks public comment on bond standards for stablecoin reserves

Japan's Financial Services Agency (FSA) has initiated a public consultation to define the scope of bonds permissible as reserves for stablecoins, The Block reported. Under Japanese regulations, stablecoin issuers are required to manage a portion of their reserve assets in the form of designated trust beneficiary rights. This consultation aims to specify which types of bonds these trust funds can be invested in. The FSA announced that it plans to accept comments until Feb. 27.