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3d ago

Japan’s FSA Poised to Approve First Regulated Yen-Pegged Stablecoin This Fall

Approval will let JPYC register as a money transfer operator to issue a 1:1 yen token backed by deposits, government bonds, high reserve buffers

Japan's financial regulator to approve first yen denominated stablecoin: report
Coins and banknotes of Japanese yen are seen in this illustration picture taken June 16, 2022. REUTERS/Florence Lo/Illustration/File Photo
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Japan

Overview

  • Japan’s Financial Services Agency is expected to approve the country’s first regulated yen-pegged stablecoin as early as fall 2025.
  • JPYC will register as a licensed money transfer business to spearhead issuance under Japan’s stablecoin legal framework.
  • The token is designed to maintain a 1:1 peg to the yen with full backing from liquid assets such as bank deposits and Japanese government bonds under strict operational rules.
  • JPYC aims to mint roughly ¥1 trillion of the stablecoin over three years to support domestic payments, cross-border remittances and corporate settlement use cases.
  • Circle Internet Group has invested in JPYC, integrating the project into global stablecoin networks, and analysts warn that planned purchases of Japanese government bonds could reshape local market demand.