Nikolas Sargeant
PayPay, the SoftBank-backed digital payments giant, has acquired a 40% equity stake in Binance Japan, marking a significant alliance between traditional fintech and cryptocurrency services in the country's regulated digital finance market. Binance Japan became an equity-method affiliate of PayPay as of September 2025.
The strategic partnership combines PayPay's extensive user base and expertise in building Japan's leading cashless payment infrastructure with Binance's innovative blockchain technology and global leadership in cryptocurrency. The alliance represents one of the biggest partnerships between traditional payments and cryptocurrency in Asia.
The collaboration will enable Binance Japan users to purchase cryptocurrency and withdraw proceeds using "PayPay Money," integrating crypto trading with mobile payment functionality. The companies plan to launch integrated services that bridge the gap between digital asset trading and everyday payment solutions.
The deal could help Binance Japan gain ground in the country, where global crypto platforms have faced intense regulatory scrutiny. Financial terms of the transaction were not disclosed, though the partnership signals growing convergence between Japan's mainstream fintech ecosystem and the cryptocurrency industry.
The acquisition comes as Japan positions itself as an increasingly crypto-friendly jurisdiction, with the Financial Services Agency requesting the government revise cryptocurrency taxation rates from the current 15-56% range to a flat rate of approximately 20%. Finance Minister Katsunobu Kato has publicly endorsed cryptocurrencies as legitimate portfolio diversification tools, marking a significant policy evolution for the country. Japan's regulatory evolution reflects a broader strategy to establish itself as a leading crypto hub in Asia, with the FSA also preparing to approve Japanese yen-denominated stablecoin issuance as early as fall 2025.
