Overview

• Japan’s Financial Services Agency is expected to register JPYC as a licensed money transfer operator this month, clearing the way for issuance of the first yen-pegged stablecoin by fall 2025.
• Each JPYC token will maintain a fixed 1:1 peg to the yen and be backed by real assets under Japan’s stablecoin laws, which took effect in June 2023.
• Regulations require JPYC to hold 101% of peak token issuance in reserves within one week and complete those deposits within three business days.
• JPYC has already issued over ¥30 billion and secured partnerships with major firms including Mitsubishi UFJ Trust and Hokkoku Bank ahead of its launch.
• By acquiring substantial Japanese government bonds to collateralize tokens, JPYC could introduce a new source of institutional demand that influences bond prices and borrowing costs.