Japan to Launch First Yen-Pegged Stablecoin, JPYC, Backed by Bank Deposits and Government Bonds

Japan's Financial Services Agency (FSA) is poised to approve the country's first yen-denominated stablecoin, marking a significant milestone in Asia's growing embrace of digital assets. The stablecoin, issued by Tokyo-based fintech firm JPYC, will be backed by liquid assets including bank deposits and Japanese government bonds.

The MOVE aligns with broader regional trends, as Hong Kong, South Korea, and China accelerate their own stablecoin initiatives. JPYC will register as a licensed money transfer business before launching the token, which is expected to facilitate international remittances, corporate payments, and settlements.

DeFi applications are also likely to benefit from the stablecoin's introduction, further integrating traditional finance with blockchain technology. The approval underscores Japan's commitment to fostering innovation while maintaining regulatory oversight.