TOKYO — UPBOND Inc. has developed a service in partnership with Japan Tax Free that allows 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 yet 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 puts 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
Starting November 1, Japan’s refund-based tax-free shopping system will require eligible travelers to pay the purchase price, including tax, and receive a refund after customs confirms that the goods are being taken out of Japan. Along with measures to address misuse—such as the domestic resale of tax-free purchases—the reform requires businesses to provide a way to issue refunds to travelers.
UPBOND: The Wallet Experience Behind the Refund
UPBOND provides products that integrate stablecoins into businesses’ services and transform them into user experiences. 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 existing systems.
Japan Tax Free operates the tax-free shopping and refund service, while JPYC serves as the refund asset. Transfers involving JPYC are planned to use Avalanche’s C-Chain. JPYC’s introduction of Japan Tax Free to UPBOND helped bring this implementation to fruition.
Receive and hold refunds in digital yen
Traditional refund methods may involve fees associated with credit card refunds and international transfers, as well as uncertainty regarding the final amount received. By sending JPYC directly to travelers’ wallets, the service can reduce transfer-related fees. Transactions are recorded on the blockchain, enabling refund tracking and confirmation. Travelers have the option to hold their refund in digital yen and consider using it on a future visit to Japan.
JPYC is delivered after customs clearance and completion of the necessary reconciliation and refund processing. The timing of receipt, fees, and the final amount received are governed by the terms of service. The use, transfer, and redemption of JPYC are subject to the availability and terms of the relevant services.
Tax Refunds as a Starting Point for the Digital Yen
Travelers shop in Japan and receive their refunds in digital yen. UPBOND views tax refunds as a gateway for yen-denominated stablecoins to become part of the travel and shopping experience. The company aims to create an experience in which travelers can hold onto their digital yen and use it during a future visit to Japan.
Policy discussions in Japan 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 mentioned considering the use of stablecoins for tax refunds during a meeting of the House of Representatives’ Transport Committee on October 21.
These are policy discussions and do not constitute the government's adoption or endorsement of this service.
Coming soon: tax refunds via Agentic Wallet
UPBOND also plans to add a tax refund feature to Agentic Wallet, which supports travel-related tasks and payments via chat. The company aims to allow users to check their refund status through conversation. This feature is a future addition, separate from the refund service launching on November 1; its availability will be announced separately.
Comments
“The refund-based system transforms tax-free shopping from a deduction at the point of purchase into a system that reliably provides a refund afterward. The question is how transparently and securely we can deliver those refunds to travelers. The yen received as a refund can be used to fund a future visit or support spending in local communities. We will continue to lead the industry in making tax-free shopping a gateway to strengthening Japan’s tourism and regional economies.”
Notes and Links
JPYC is a Japanese yen-pegged 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.