Japan Duty Free and UPBOND will launch a yen-denominated stablecoin refund service on November 1, 2026. The service lets foreign visitors receive tax refunds in JPYC. It will run through the JapanRefund platform under Japan's new refund method.
How the refund works
Travelers pay tax-inclusive prices at stores. After customs confirmation at departure, they receive their refunds. Japan Duty Free sends purchase record information to the tax authority for merchants.
Why stablecoins are used
Card and international transfer refunds can include fees that travelers only notice later. JPYC moves directly to a traveler's wallet on the Avalanche C-Chain. All refund transfers are recorded on the blockchain and can be tracked.
Wallet and merchant setup
UPBOND supplies the wallet infrastructure for the service. Travelers set up a receiving address in the wallet, so stores never handle card or account data. JPYC can be held as digital yen or exchanged on-chain for USDC.
The companies plan to expand refund options and add the service to UPBOND's Agentic Wallet later. Japan Duty Free also has agreements with Nara Prefecture and Hakodate City. The timing for the Agentic Wallet update will be announced separately.