Overview

• Japan’s Financial Services Agency is expected to authorize JPYC’s yen-pegged stablecoin by fall under legislation restricting issuers to regulated entities.
• JPYC is registering as a licensed money transfer operator this month to lead the issuance and distribution of the new token.
• Each JPYC token will trade at a fixed rate of one yen and be backed by bank deposits alongside Japanese government bonds under strict 101% reserve requirements.
• The issuer aims to circulate roughly $7 billion worth of tokens over three years, with planned JGB purchases poised to create a new source of demand that may influence bond yields.
• Following March’s approval of USDC in Japan, this move underscores Tokyo’s emergence as a leader in comprehensive stablecoin regulation.