TL;DR
- Avalanche’s C-Chain will support a new tax refund service launching on November 1, 2026, allowing eligible tourists in Japan to receive refunds in JPYC, a yen-denominated stablecoin.
- UPBOND and Japan Tax Free will combine wallet infrastructure with existing refund processing, transferring funds after customs clearance and internal reconciliation.
- The initiative comes as Japan explores broader stablecoin applications, including corporate payments and tokenized financial products, expanding the potential role of blockchain in everyday financial services.
Avalanche is expanding its presence in Japan’s travel sector through a new service that allows eligible international visitors to receive tax refunds in JPYC through its C-Chain blockchain. The initiative, developed by UPBOND and Japan Tax Free, is scheduled to launch on November 1, 2026, connecting digital wallets with Japan’s established tax-free shopping process.
The service introduces another practical use for yen-backed stablecoins, linking blockchain settlement with a familiar financial activity for international travelers. Instead of relying exclusively on conventional refund channels, eligible visitors will be able to receive approved funds directly into a digital wallet.
JUST IN: Japan's tax refunds for travelers are coming to Avalanche via JPYC stablecoin
Japan Tax Free, @jpyc_official, and UPBOND are developing a way for international visitors to receive eligible refunds on Avalanche C-Chain, directly to their wallets.
Real-world payments… pic.twitter.com/SBZvGIgM22
— Avalanche🔺 (@avax) October 29, 2026
How Avalanche And JPYC Will Transform Tourist Tax Refunds
UPBOND will provide wallet creation, authentication and transfer infrastructure, while Japan Tax Free will continue managing purchases, eligibility checks and refund approvals through its JapanRefund platform. JPYC will serve as the settlement asset, with transactions recorded on Avalanche’s C-Chain.
Travelers must complete the required authentication procedures and customs clearance before receiving their refunds. The companies will also conduct internal reconciliation, meaning transfers will not necessarily occur immediately after a purchase or departure. Fees, processing times and final amounts will depend on the applicable service terms.
The blockchain-based model could simplify the movement of funds by allowing approved refunds to reach travelers’ wallets directly. Public blockchain records also provide a way to verify transactions and improve payment traceability for users and service operators.
However, actual savings will depend on the fees charged by the platforms involved and the costs of holding, transferring or redeeming JPYC. Travelers will also need to consider wallet access, applicable service restrictions and the stablecoin’s redemption arrangements.
UPBOND has separately indicated plans to introduce refund-status tracking through its Agentic Wallet, a conversational tool designed to assist with travel-related tasks. That feature is not part of the initial November launch.
Japan Expands Its Exploration Of Yen Stablecoins
The launch arrives as Japanese financial institutions and technology companies investigate additional uses for digital yen payments. In July 2026, Mitsubishi UFJ Bank, Mizuho Bank and Sumitomo Mitsui Banking Corporation participated in a trial involving a jointly issued yen stablecoin for corporate cross-border payments.
On October 27, BlackRock signed a memorandum of understanding with SBI Holdings and Startale Group to explore connections between tokenized money-market funds and JPYSC, another yen-backed stablecoin. These initiatives illustrate how financial firms are examining blockchain-based settlement beyond cryptocurrency trading.
