Japan’s FSA to Approve First Yen-Denominated Stablecoin, JPYC, This Autumn

Japan’s Financial Services Agency (FSA) is set to approve the issuance of the country’s first yen-denominated stablecoin, JPYC, this autumn, with the fintech firm JPYC based in Chiyoda, Tokyo, expected to be registered as a funds transfer service by the end of August.

The stablecoin will be pegged at 1 JPYC = 1 JPY and backed by liquid assets such as bank deposits and government bonds. Aiming to facilitate international remittances and corporate payments, JPYC plans to issue ¥1 trillion over the next three years. The approval aligns with a regulatory framework established under the revised Payment Services Act, which distinguishes stablecoins from cryptocurrencies and allows licensed operators to issue them. JPYC’s representative, Noritaka Okabe, indicated that the stablecoin could significantly impact the Japanese government bond market by increasing demand.