UPBOND and Japan Tax Free Bring JPYC Stablecoin Tax Refunds to International Visitors

TOKYO — UPBOND Inc. has developed a service with Japan Tax Free that enables international visitors to Japan to receive tax refunds in JPYC, a yen-denominated stablecoin. The refund service will launch on November 1, 2026, on Avalanche.

The service connects Japan Tax Free’s JAPAN Refund system with UPBOND’s products, allowing travelers — including those who do not already have a wallet — to set up a receiving wallet and receive their refund. UPBOND provides wallet creation and authentication, integration with the refund system for JPYC transfers, and transfer-status confirmation.

The launch brings the tax-refund model announced by Japan Tax Free and JPYC in March 2026 into practical use for travelers.

A new way to receive tax refunds

From November 1, Japan’s refund-based tax-free shopping system will require eligible travelers to pay the tax-inclusive purchase price and receive a refund after customs confirms that the goods are being taken out of Japan. Alongside measures to address misuse, such as domestic resale of tax-free purchases, the reform requires businesses to provide a way to deliver refunds to travelers.

Three-step process: pay the tax-inclusive price, customs confirms export, then receive a tax refund. — The refund flow from November 1, 2026.

UPBOND: the wallet experience behind the refund

UPBOND provides products that integrate stablecoins into businesses’ services and turn them into experiences people can use. For this service, UPBOND connects wallet creation and authentication, JPYC transfer integration, and transfer-status confirmation with Japan Tax Free’s refund operations. In addition to supplying its products, UPBOND supports integration and testing with the existing system.

Japan Tax Free operates the tax-free shopping and refund service, while JPYC serves as the refund asset. JPYC transfers are planned to use Avalanche’s C-Chain. JPYC’s introduction of Japan Tax Free to UPBOND helped bring this implementation together.

Receive and hold refunds in digital yen

Traditional refund methods can involve fees associated with card refunds and international transfers, as well as uncertainty about the final amount received. By sending JPYC directly to travelers’ wallets, the service can reduce transfer-related fees. Transactions are recorded on the blockchain, supporting refund tracking and confirmation. Travelers gain the option to hold their refund in digital yen and consider using it on a future visit to Japan.

Comparison of receiving a refund through a conventional method and receiving JPYC directly to a wallet. — Illustrative refund options; availability, timing and fees depend on provider and service terms.

JPYC is delivered after customs confirmation and completion of the necessary reconciliation and refund processing. Receipt timing, fees and the final amount received are governed by the service terms. The use, transfer and redemption of JPYC are subject to the availability and conditions of the relevant services.

Tax refunds as an entry point for digital yen

Travelers shop in Japan and receive their refunds in digital yen. UPBOND sees tax refunds as an entry point for yen-denominated stablecoins to become part of travel and shopping. The company aims to create an experience in which travelers can retain digital yen and connect it with a future visit to Japan.

Japan’s policy discussions are also exploring the practical use of stablecoins. In her March 2026 FIN/SUM message, Finance Minister and Minister of State for Financial Services Satsuki Katayama highlighted the importance of operational efficiency and safety. Minister of Land, Infrastructure, Transport and Tourism Tatsunori Ibayashi was also reported to have referred to considering stablecoins for tax refunds at the House of Representatives’ transport committee on October 21.

These are policy discussions and do not constitute government adoption or endorsement of this service.

Coming next: tax refunds through Agentic Wallet

UPBOND also plans to add tax-refund functionality to Agentic Wallet, which supports travel-related tasks and payments through chat. The company aims to let users check their refund status through conversation. This functionality is a future addition, separate from the refund service launching on November 1; its availability will be announced separately.

Comments

Gin Takashi Mizuoka, Representative Director of UPBOND

“We see stablecoins as an entry point to blockchain-based finance. We want to make this new form of finance more accessible in Japanese yen, too. That requires concrete, everyday uses and experiences that people can use without thinking about the technology.
UPBOND provides products that integrate stablecoins into businesses’ services and turn them into experiences anyone can use. Together with Japan Tax Free, we are bringing that experience to people through the familiar touchpoint of tax refunds.
Someone who has never had a wallet can receive digital yen and encounter a new form of finance. We want to extend that entry point across a wider range of services.”
Gin Takashi Mizuoka, Representative Director, UPBOND

“The refund-based system changes tax-free shopping from a deduction at the point of purchase to a system that reliably delivers money afterward. The question is how transparently and safely we can deliver those refunds to travelers. Yen received as a refund can support a future visit or spending in local communities. We will continue working at the forefront of the industry to make tax-free shopping an entry point for strengthening Japan’s tourism and regional economies.”
石井邦知, Japan Tax Free

Notes and links

JPYC is a Japanese yen-linked stablecoin classified as an electronic payment instrument under Japan’s Payment Services Act. “JPYC” and the JPYC logo are registered trademarks of JPYC Inc. The accompanying images and video were produced by UPBOND and were not officially produced or supervised by JPYC.