[Japan's First※] Kirifuda Announces Regulation-Compliant DeFi Lending Service 'LaaS'

Kirifuda Co., Ltd. (Headquarters: Chuo-ku, Tokyo; President and CEO: Hideyuki Akagawa; hereinafter 'Kirifuda') announced on July 14, 2026, the launch of 'LaaS,' a regulation-compliant DeFi lending service that can be integrated into trading and wallet applications. As the first offering, the company will provide the DeFi lending protocol 'Morpho' to domestic businesses.

When domestic businesses utilize DeFi, they are required not only to address technical aspects but also to ensure alignment with domestic regulations. Kirifuda aims to reduce this compliance burden and support the social implementation of on-chain finance in Japan. For Morpho, the company has analyzed technical specifications, smart contract architecture, risk characteristics, and regulatory considerations under Japanese law, incorporating consultations with relevant authorities such as the Financial Services Agency (FSA) as needed, and will deliver it in a form that enables domestic businesses to integrate it into their own services.

※Based on Kirifuda's own survey of domestic businesses that have implemented regulatory-compliant DeFi lending protocols.

Market Background: Expansion of On-Chain Finance and Advancement of Domestic Regulatory Framework

Blockchain-based financial services such as stablecoins, tokenized assets, and DeFi lending are expanding globally. The global stablecoin market has reached approximately $290 billion, equivalent to about 45 trillion yen. In Japan, the Japanese yen-pegged stablecoin 'JPYC' has surpassed 1.3 billion yen in cumulative issuance. In June 2026, Japan's first trust-based yen-pegged stablecoin 'JPYSC' began operations with an issuance scale of 10 billion yen※2. Additionally, major megabanks are reportedly exploring joint issuance of yen-pegged stablecoins※3, accelerating the development of yen-pegged stablecoin infrastructure.

Morpho, the first protocol offered through this service, is one of the world's largest DeFi lending protocols, managing approximately $13 billion in assets (about 2 trillion yen). It serves as the lending backbone for Coinbase, a major U.S. cryptocurrency exchange with over $2.17 billion in collateralized loans, and for SG-FORGE, a subsidiary of the European financial group Société Générale, which issues stablecoins (Source: Public materials from Morpho and Coinbase, as of April 2026).

※1 Cabinet Office, Japan: 'Subcommittee on Promoting Japan as an Asset Management Nation for New Strategy Formulation (4th Meeting)' (https://www.cas.go.jp/jp/seisaku/nipponseichosenryaku/kinyu/dai4/gijishidai.html)

※2 SBI Holdings, Inc.: 'SBI Holdings and Startale Group Announce Japan's First Trust-Based Japanese Yen-Pegged Stablecoin “JPYSC”' (https://www.sbigroup.co.jp/news/2026/0227_16153.html)

※3 Mitsubishi UFJ Financial Group, Mizuho Financial Group, Sumitomo Mitsui Financial Group: 'Establishment of a Council to Jointly Study and Launch a Jointly Issued Stablecoin in FY2026' (https://www.bk.mufg.jp/news/news2026/pdf/news0610.pdf)

Challenges in DeFi Adoption by Domestic Businesses

However, when domestic businesses integrate DeFi protocols into their services, they must go beyond simply connecting to external protocols. They need to individually assess multiple regulatory considerations under Japanese law, including technical specifications, risk profiles, user onboarding flows, applicability as electronic payment instruments, trading/exchange/brokering of crypto assets, collective investment scheme participation, custody, and fund applicability.

Kirifuda aims to support the social implementation of on-chain finance in Japan by acting as a layer that interprets globally used DeFi protocols into forms usable by domestic businesses—serving as an 'Enabler of On-Chain Finance.'

[Japan's First] What is the Regulation-Compliant DeFi Lending Service 'LaaS'?

'LaaS' is a service that provides DeFi lending functionality, enabling domestic wallet providers, crypto exchanges, and similar businesses to integrate DeFi lending protocols into their own services.

By adopting LaaS, businesses can integrate lending features into their own apps via API/SDK without needing in-house blockchain specialists, allowing them to offer lending yields to their customers.

For Morpho, the first protocol offered, Kirifuda has analyzed the smart contracts, market structure, vault structure, permission design, fee structure, and risk factors. The company will deliver it in a form ready for integration into business applications, with regulatory considerations and user protection aspects clearly documented.

### LaaS Service Structure

#### Differences Between Traditional Finance and On-Chain Lending

In traditional banking lending, credit assessment and debt collection require significant human effort and time. By digitizing and automating the lending process on blockchain, substantial cost reductions become possible.

In actual on-chain lending, functions such as contract execution, yield calculation, collateral management, and liquidation can be automated via smart contracts, enabling significant labor reduction.

#### Target Businesses and Benefits

This service targets wallet providers, crypto exchanges, and businesses managing stablecoin balances, points, or in-app balances.

- Reduced regulatory compliance burden - Kirifuda provides pre-analyzed documentation on custody, lending intermediation, fund applicability, trading/exchange/brokering, and user protection※ - No need for specialized personnel - Businesses can integrate via API/SDK without hiring smart contract developers - New value proposition for customers - Enables customers to earn lending yields from their account balances

※Final legal verification must be conducted individually by each adopting business based on their specific service design.

#### Service Offerings

Specifically, the following components are designed and provided as an integrated package:

- Gateway Infrastructure - An on-chain foundation that technically enforces usage restrictions via smart contracts, based on analysis of regulatory issues (custody, intermediation, fund applicability, trading/exchange/brokering, user protection, etc.). Technical specifications, risk characteristics, and design rationale are included in accompanying design documentation for verification by the adopting business’s legal and compliance teams. - API/SDK - Simplifies execution of deposits and withdrawals, balance and yield inquiries, and integration of risk disclosure and user consent workflows - Management Dashboard - Visualizes lending operations, transaction history, and consent records. Does not include functions for asset transfer, asset operation, or investment advice - Integration Support and Operational Assistance - Provides support for integration design and proof-of-concept development, as well as post-launch monitoring and coordination during risk events

※This is a conceptual design during development and may change before official release.