Japan Prepares to Approve Its First Yen-Denominated Stablecoin This Fall

Japan Prepares to Approve Its First Yen-Denominated Stablecoin

Japan’s Financial Services Agency (FSA) is preparing to approve the issuance of the country’s first yen-pegged stablecoin this fall. This marks one of Japan’s pioneering steps in cryptocurrency regulation.

JPYC Stablecoin Is Coming

According to local news outlet Nikkei, Tokyo-based fintech company JPYC is nearing the completion of official procedures for its eponymous stablecoin. The company is expected to register with the FSA as a “fund transfer service” in August, and shortly afterward begin token sales.

The JPYC stablecoin will be backed by highly liquid assets such as deposits and government bonds, ensuring price stability and creating a trust-based usage environment.

JPYC’s new stablecoin could serve as an important tool not only for individual investors but also for corporate finance and global trade. Potential use cases include:

• International money transfers

• Corporate payments

• DeFi ecosystem integration

Use Cases and Goals

The company has ambitious targets: JPYC plans to issue stablecoins worth 1 trillion yen (approximately $6.78 billion) over the next three years. Reports also indicate that some hedge funds have already shown interest in this asset.

Japan’s Stablecoin Regulatory History

Japan has been an early mover in stablecoin regulation:

• June 2022: The Japanese parliament amended the Payment Services Act, defining stablecoins as “Electronic Payment Instruments.” This law allowed only licensed banks, service providers, and trust companies to issue stablecoins.

• 2023: Stablecoins were officially classified as “currency-denominated assets.”

Following these steps, many major players in Japan’s financial sector turned toward the stablecoin space. For example, Sumitomo Mitsui Financial Group (SMBC) announced plans earlier this year to develop a stablecoin in collaboration with Ava Labs and Fireblocks.

With FSA approval, the launch of the JPYC stablecoin will be a significant milestone not only for domestic payments but also in global finance and cryptocurrency markets. This move could position Japan as a regional leader in the Asian stablecoin ecosystem.

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