Japan's digital payment giant PayPay has bought a 40% stake in Binance Japan, creating one of the biggest partnerships between traditional payments and cryptocurrency in Asia.
The deal, officially announced on October 9, 2025, connects PayPay’s 70 million users with Binance’s crypto trading platform.
The partnership is backed by SoftBank, one of Japan’s largest technology companies. PayPay is owned by a mix of SoftBank Corp, the Vision Fund, and LY Corp (a partnership between SoftBank and South Korea’s Naver). The financial details of the acquisition remain undisclosed, though the transaction was completed in September 2025.
How the Integration Will Work
The companies plan to let PayPay users buy and sell cryptocurrencies directly through their existing payment app. Users will be able to purchase digital assets using PayPay Money—the app’s digital wallet feature—without needing to transfer funds to separate accounts or deal with complicated bank transfers.
When users sell their crypto holdings on Binance Japan, they’ll be able to withdraw proceeds straight into their PayPay accounts. This creates a seamless connection between everyday spending money and digital investments.
Source: @_BinanceJapan
Masayoshi Yanase, a corporate officer at PayPay, explained the strategy: “By investing in Binance Japan which is a part of Binance, the world’s largest digital asset exchange by trading volume, we will provide Binance users with solutions that combine the convenience and security of PayPay.”
PayPay’s Dominance in Japanese Payments
PayPay launched in 2018 and quickly became Japan’s leading cashless payment service. The company reached 70 million users in July 2025 and processed 380 million money transfers in 2024—a 36% jump from the previous year. To put that in perspective, traditional bank transfers in Japan only grew by 7.5% during the same period.
The company isn’t stopping at Japan’s borders. PayPay filed paperwork with the U.S. Securities and Exchange Commission in August 2025 to list American depositary shares, signaling plans for international expansion. The company also launched services in South Korea in September 2025.
Binance Japan’s Regulatory Standing
Binance Japan operates as a fully licensed crypto exchange in Japan, registered with the Kanto Local Finance Bureau. The company has offered spot trading and earning products since August 2023, following strict Japanese regulations.
Japan requires all crypto exchanges to register with the Financial Services Agency (FSA), maintain offices in Japan, implement strong anti-money laundering procedures, keep customer funds separate from company assets, and hold minimum capital of 10 million yen (about $70,000).
Binance re-entered the Japanese market in 2022 by acquiring Sakura Exchange BitCoin, a licensed platform. Since then, the company has built its operations to meet Japan’s strict financial standards.
Market Response and BNB Price Surge
The market responded quickly to the partnership announcement. BNB, Binance’s native cryptocurrency, surged significantly. The token’s market capitalization added roughly $60 billion between early September and the announcement date—a 48% increase. BNB traded around $1,300 on announcement day, up 26% from the previous week, with a total market cap of approximately $182 billion.
The rally pushed BNB past XRP to become the third-largest cryptocurrency by market value, trailing only Bitcoin and Ethereum. Some analysts predict BNB could test $1,350 or even $1,500 if the momentum continues.
Binance founder Changpeng Zhao confirmed the partnership on social media, adding credibility to the announcement.
Japan’s Changing Crypto Landscape
This partnership arrives as Japan reshapes its approach to digital assets. The country’s Financial Services Agency has proposed moving cryptocurrencies under securities law, giving them the same legal status as stocks and bonds.
More importantly for investors, Japan plans to cut crypto taxes dramatically. Currently, profits can face rates up to 55% when local taxes are included. The new proposal would establish a flat 20% rate—matching how stocks are taxed.
Japan also approved its first yen-backed stablecoin in fall 2025, with Tokyo-based company JPYC leading the rollout. The country now has over 12 million active crypto trading accounts holding assets worth about $34 billion.
Several major Japanese companies have already embraced Bitcoin as a treasury asset. Metaplanet, the largest corporate holder in Japan, owns 30,823 BTC.
What This Means for Users
The partnership could transform how millions of Japanese people interact with cryptocurrency. Instead of downloading separate apps, completing multiple verification processes, and learning new interfaces, PayPay users will access crypto through an app they already trust and use daily.
Takeshi Chino, general manager of Binance Japan, said the alliance represents “a significant step toward the future of digital finance in Japan. By combining PayPay’s extensive user scale with Binance’s innovative technology, we will be able to make Web3 more accessible to people across the country.”
Industry experts believe the deal could trigger similar partnerships between other Japanese payment companies and crypto exchanges. PayPay’s reach gives Binance Japan access to a massive user base, while Binance provides PayPay with blockchain expertise to expand beyond traditional payments.
The Road Ahead
The PayPay-Binance partnership demonstrates how mainstream finance and cryptocurrency are merging in regulated markets. Japan’s clear rules and supportive stance toward digital assets have created an environment where such collaborations can thrive.
For everyday users, this means crypto investing could soon feel as simple as buying coffee with a phone tap. Whether this model spreads to other countries depends largely on how regulators respond—but Japan is clearly betting that the future of money includes both traditional payments and digital assets working together.
