Japan Set to Approve First Yen-Backed Stablecoin This Fall, Marking Historic Shift in Digital Currency Policy

Tokyo-based JPYC will pioneer Japan's first yen-pegged stablecoin after securing registration as a money transfer business. The launch positions Japan as a regulatory frontrunner in digital assets, contrasting with global markets where dollar-backed stablecoins dominate the $286 billion sector.

JPYC maintains a strict 1:1 yen reserve ratio backed by bank deposits and government bonds. The issuer faces rigorous capital requirements—depositing 101% of circulating supply within three business days. Unlike proprietary blockchain solutions, JPYC will leverage existing public chains for interoperability.

The stablecoin could reshape Japan's bond markets, according to JPYC's Ryosuke Okabe. "Yen-denominated digital assets create new pathways for institutional participation," he noted, drawing parallels to US stablecoin impacts on Treasury markets.