Japan to Approve JPYC, First Yen-Backed Stablecoin, by October
Japan’s Financial Services Agency (FSA) is set to approve JPYC, a yen-backed stablecoin, as early as October under new currency-denominated asset rules. Issued by Tokyo-based fintech JPYC and registering this month as a licensed money transfer company, the yen-backed stablecoin JPYC will be fully backed by bank deposits and Japanese government bonds. The issuer aims to reach 1 trillion yen ($6.8 billion) in circulation within three years. Traders see applications in cross-border remittances, corporate payments, decentralized finance and carry trades exploiting interest-rate differentials. Institutional investors, including hedge funds and family offices, have already shown interest. The global stablecoin market tops $250 billion, led by USDT and USDC, and could near $4 trillion by 2030. Japan’s regulated approach may boost regional adoption in Asia and provide a clearer legal path for blockchain-based settlements.
Neutral
Approval of JPYC and its licensing under Japan’s FSA framework provides regulatory clarity and could drive adoption among traders and institutions. However, as a stablecoin pegged to the yen, JPYC’s price is designed to remain stable, limiting direct price volatility. In the short term, trader interest and on-chain activity may rise, but the peg mechanism will constrain price movements. Over the long term, Japan’s regulated approach could enhance market trust and expand JPYC’s use cases, yet the stable value nature means its price impact remains neutral.