JPYC Becomes Japan’s First Licensed Stablecoin Under New FSA Rules

Tokyo-based fintech firm JPYC has launched Japan's first legally recognized yen-backed stablecoin, marking a historic milestone in the country's regulated digital currency market. The stablecoin, backed one-to-one by bank deposits and government bonds, officially debuted on October 27 alongside a dedicated issuance and redemption platform.

JPYC operates under a strict regulatory framework, having received authorization from Japan’s Financial Services Agency (FSA) under new stablecoin rules introduced in 2024. Unlike cryptocurrencies, JPYC is classified as a fiat-linked payment asset, with its value directly tied to the Japanese yen. CEO emphasized, "JPYC is not a cryptocurrency. It’s a fiat-linked payment asset whose value is tied directly to the Japanese yen."

The launch positions Japan’s stablecoin market for significant growth, leveraging clear legal standards for issuance, reserves, and redemption. JPYC had previously operated as a trial project since 2021, laying the groundwork for this fully regulated digital yen alternative.