SOWAKA Pte. Ltd. (hereinafter "SOWAKA") has established Sowaka Japan Inc. (headquartered in Minato-ku, Tokyo; Representative Director: Wataru Matsuda), effective June 1, 2026, to build an environment for stablecoin usage in Japan. Sowaka Japan will lead business development with domestic stores, enterprises, and local communities, as well as merchant acquisition and service implementation and operational support. As its first initiative, the company will launch "MisePay," a QR code-based payment system designed for merchants accepting stablecoin payments. MisePay achieves a 0% transaction fee for merchants. Additionally, by leveraging smart account technology, it features a permission management system that enables delegation of refund operations to on-site staff without granting them full administrative control over the store wallet. Pilot trials aimed at verification have already been confirmed with multiple stores, and Sowaka Japan is now launching a new call for additional participating merchants ahead of official service rollout. Background for Establishing the Japanese Entity The stablecoin ecosystem is transitioning from a phase centered on holding and trading to one focused on practical applications—such as in-store payments, intercompany transactions, and integration into various services. However, the number of stores and services where stablecoins can be used for everyday payments remains limited. Simply developing a payment system is insufficient to expand usage locations. What is needed are merchant acquisition efforts, in-store explanations, post-implementation operational support, and structures tailored to Japanese business practices and merchant needs. The Web3 service "Avacus" has, since its launch in December 2017, proposed new user experiences leveraging cryptocurrencies and blockchain through the development and operation of wallet, social networking, and community features. Since August 2022, SOWAKA has been operating the Avacus business. Sowak