Kirifuda Launches Japan's First Regulatory-Compliant DeFi Lending Service, 'LaaS'

On July 14, 2026, Kirifuda Co., Ltd. unveiled its groundbreaking regulatory-compliant decentralized finance (DeFi) lending service, 'LaaS'. This platform will integrate seamlessly into trading and wallet applications, marking a significant leap for domestic businesses looking to utilize DeFi lending protocols.

In the ever-evolving financial landscape, Japanese companies venturing into DeFi must navigate not just technological frameworks but also stringent regulations. Kirifuda aims to alleviate such challenges, enabling the implementation of on-chain finance within Japan. The first protocol to be offered through 'LaaS' is 'Morpho', a leading DeFi lending protocol designed specifically for domestic operators. Kirifuda has meticulously analyzed its technical specifications, the structure of smart contracts, risk factors, and pertinent regulatory issues, including consultations with Japan's Financial Services Agency, to ensure a robust offering for local businesses.

Market Background: Growth of On-Chain Finance

The adoption of blockchain-based financial services has surged both domestically and internationally, including stablecoins, tokenized assets, and DeFi lending. The global stablecoin market has ballooned to approximately $290 billion, translating to around ¥45 trillion in Japan. On a national level, significant developments include the issuance of the Japanese yen stablecoin 'JPYC', which has exceeded an issuance of ¥1.3 billion, and the launch of Japan’s first trust-based stablecoin 'JPYSC', with an issuance totaling ¥10 billion in June 2026.

Morpho, as part of this service rollout, stands as one of the largest DeFi lending protocols worldwide, boasting approximately $13 billion or ¥2 trillion in managed assets. It's also noteworthy that leading cryptocurrency exchange Coinbase utilizes Morpho for its crypto-backed loans, alongside Société Générale’s subsidiary, SG-FORGE, which employs it as a lending foundation for its stablecoin.

Challenges for Domestic Businesses in Utilizing DeFi

As domestic firms seek to incorporate DeFi protocols into their services, they face multiple regulatory hurdles. It’s not merely about connecting to external protocols; businesses must coordinate around numerous regulatory considerations, including the nature of electronic payments, the status of cryptocurrencies, investment scheme qualifications, and custody implications. Kirifuda is stepping up as an 'enabler' of on-chain finance, working to modify global DeFi protocols into locally viable offerings for Japanese businesses, thus facilitating the societal adoption of such financial technologies.

What Is 'LaaS'? Japan's First Regulatory-Compliant DeFi Lending Service

'LaaS', which stands for Lending as a Service, provides a way for domestic wallet operators and cryptocurrency exchanges to incorporate DeFi lending protocols into their services. By using 'LaaS', businesses can offer lending rewards to their customers without needing to employ blockchain experts. Through APIs and SDKs, they can integrate lending features into their applications without the overhead of deeply understanding underlying processes.

In its first phase with Morpho, Kirifuda will deliver smart contract analysis and risk assessments while addressing regulatory issues and consumer protection considerations, ensuring a practical integration for business apps.

Differences Between Traditional Banking and On-Chain Lending

Traditional lending has historically involved lengthy processes and human labor for borrower evaluation and debt collection. By utilizing technology on the blockchain for these processes, Kirifuda’s model promises substantial cost reductions. Services such as contract enforcement, profit calculations, and collateral management can all be automated via smart contracts, drastically reducing the manpower typically necessary in conventional banking.

Target Businesses and Benefits of Implementing 'LaaS'

The 'LaaS' service is aimed at wallet operators, cryptocurrency exchanges, and other businesses that manage stablecoin balances or in-app financial points.

Benefits for Integrating Businesses:

- Reduced Regulatory Burden: Kirifuda simplifies complex regulatory challenges such as custody, borrowing, exchange qualifications, and user protection considerations for businesses.
- No Need for Specialized Talent: Businesses do not need to hire smart contract developers; they can embed services into their offerings through simple API/SDK integrations.
- Enhanced Value for Customers: By providing customers with opportunities to earn through lending with their account balances.

Conclusion and Future Prospects

Kirifuda’s commitment to transforming global DeFi services for local applicability continues with its 'DeFi Regulatory Gateway' concept. This innovation serves to bridge the gap between international DeFi protocols and the regulatory landscape in Japan, facilitating broader domestic adoption. As Kirifuda expands beyond Morpho to include other diverse DeFi services, the company aims to enhance operational capabilities and compliance measures to support a range of financial use cases in Japan.

For businesses considering the implementation of on-chain financial functions, Kirifuda offers comprehensive support—from regulatory compliance and technology integration to user experience design—ensuring thorough engagement from experimentation to societal implementation.

Kirifuda Co., Ltd. is dedicated to promoting the intersection of traditional finance and decentralized technologies for a brighter financial future.