Softbank-Backed PayPay Acquires 40% Stake in Binance Japan

Japan’s digital payment leader PayPay, backed by Softbank and Yahoo Japan, has entered the crypto arena in a major way — acquiring a 40% stake in Binance Japan, according to sources close to the deal.

This strategic move marks one of the most significant collaborations between a traditional fintech powerhouse and a global cryptocurrency exchange in Japan’s tightly regulated market.

Deal Overview

PayPay, which serves over 70 million users across Japan, will now play a pivotal role in expanding Binance Japan’s reach to mainstream consumers.

While neither company has disclosed financial terms, early reports suggest the valuation puts Binance Japan’s market worth above ¥25 billion ($165 million), with the deal expected to close by year-end pending regulatory review by the Japan Financial Services Agency (FSA).

The move could bridge the gap between everyday mobile payments and digital asset trading, setting the stage for seamless crypto integration within Japan’s largest fintech ecosystem.

“This partnership represents the next evolution of digital finance in Japan,” said a PayPay spokesperson. “Our focus is to bring secure, regulated, and accessible crypto services to millions of users who already trust the PayPay brand.”

Why It Matters: Crypto Meets Mainstream Fintech

This acquisition comes at a pivotal time for Japan’s digital economy. The country has maintained one of the most progressive yet structured regulatory frameworks for crypto trading, following its early licensing of exchanges under the Payment Services Act.

By aligning with Binance, PayPay gains instant access to advanced blockchain infrastructure, liquidity, and international reach — while Binance secures a powerful domestic partner capable of scaling adoption faster than any local competitor.

The deal could also unlock:

• Crypto-to-fiat integration directly inside the PayPay app.
• Simplified KYC compliance through PayPay’s existing verification system.
• Merchant crypto payments, potentially bringing digital assets to Japan’s retail sector.

Regulatory Context: Japan’s Tight but Supportive Crypto Stance

The FSA has maintained firm oversight of all crypto operations, mandating strict custody, anti-money laundering (AML), and consumer protection standards.

Binance Japan — launched in August 2023 after acquiring Sakura Exchange BitCoin (SEBC) — has since operated fully under Japanese law, making it one of Binance’s most compliant global entities.

Industry observers note that this partnership with a domestic giant like PayPay could strengthen Binance’s long-term legitimacy in Japan after years of regulatory friction in other jurisdictions.

“This is the clearest signal yet that Japanese regulators are warming to a more integrated fintech-crypto ecosystem,” said Takahiro Hasegawa, senior analyst at Tokyo Digital Markets. “A Softbank-backed firm joining forces with Binance would have been unthinkable two years ago.”

Market Impact: A Catalyst for Japan’s Crypto Growth

Analysts predict that PayPay’s entry into the crypto sector could accelerate retail adoption dramatically.
With 70 million registered users and deep integration in Japan’s e-commerce and retail ecosystem, the firm could instantly expose tens of millions of people to crypto services.

If crypto trading, staking, and payments become available directly in PayPay’s mobile app, Japan could see a surge in:

• Crypto payment volumes, particularly in the travel and e-commerce sectors.
• DeFi participation as user familiarity grows.
• Cross-border remittances using Binance’s global liquidity rails.

The announcement has already sparked optimism in the local market — with Binance Japan’s app downloads up 19% week-over-week and PayPay’s tokenized rewards program seeing renewed activity.

Softbank’s Broader Crypto Ambitions

Softbank, a long-time investor in fintech innovation, has been exploring deeper blockchain integrations across its portfolio. The conglomerate previously invested in FTX Japan before its collapse, as well as in Elliptic, a blockchain analytics firm.

This latest move via PayPay signals a renewed strategic commitment to regulated crypto infrastructure — potentially setting the stage for broader web3 initiatives in Asia.

What’s Next for Binance Japan and PayPay

Over the coming months, PayPay and Binance Japan are expected to launch:

• Joint crypto payment solutions for merchants across Japan.
• Integrated wallets allowing PayPay users to buy, sell, and hold crypto.
• Educational initiatives focused on safe and compliant crypto use.

If successful, this collaboration could serve as a blueprint for global fintech-crypto partnerships — merging trust, scale, and blockchain innovation under one user experience.