Japan’s First Yen-Backed Stablecoin Poised For Approval This Fall

Japan’s Financial Services Agency (FSA) is on the verge of approving the nation’s inaugural Yen-denominated stablecoin, marking a milestone in the country’s crypto regulatory landscape. Tokyo-based fintech JPYC is poised to lead the issuance under Japan’s revised Payment Services Act framework, with plans to roll out approximately $7 billion worth of the stablecoin over three years.

The stablecoin, pegged 1:1 to the Japanese Yen, will be backed by highly liquid assets including bank deposits and Japanese government bonds. Regulatory approval could come as early as this autumn, with JPYC ready to commence sales shortly after. The MOVE is expected to streamline cross-border remittances and bolster DeFi activity within Japan, reducing reliance on dollar-pegged tokens.

Market observers note the potential for this development to catalyze broader institutional adoption of blockchain-based financial instruments in Asia’s second-largest economy.