Japan's Financial Services Agency (FSA) will approve the country's first yen-denominated stablecoin as early as this fall, with Tokyo-based fintech JPYC Inc. leading the rollout. The firm is finalizing registration as a money transfer business this month, clearing the path for token issuance.
JPYC tokens will maintain a strict 1:1 peg to the Japanese yen, backed by liquid reserves including bank deposits and Japanese Government Bonds (JGBs). Users can acquire tokens through bank transfers to digital wallets, enabled by Japan's 2023 Payment Services Act revision that established clear licensing requirements for stablecoin issuers as banks, money transfer businesses, or trust companies.
This regulatory milestone positions Japan with one of the world's most defined stablecoin frameworks, contrasting with jurisdictions lacking legal clarity. The move aims to reduce reliance on dollar-pegged stablecoins like Tether's USDT and Circle's USDC – which already operate locally – while potentially reshaping domestic DeFi ecosystems, cross-border trade, and blockchain settlements.
JPYC Representative Okabe highlighted parallels to U.S. Treasury markets, noting: "JPYC will likely start buying Japanese government bonds in large quantities" – mirroring how Tether became a major Treasury holder. This could alleviate pressure on Japan's debt market, where public debt exceeds 250% of GDP. The development follows Circle's USDC entry via SBI VC Trade in March, with planned expansions to Binance Japan, bitbank, and bitFlyer.