Japan will approve yen-backed stablecoins this fall, starting with fintech firm JPYC
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Japan will allow the issuance of yen-backed stablecoins for the first time this fall, according to the Financial Services Agency. The decision paves the way for licensed fintech players to enter the stablecoin arena legally, with Tokyo-based JPYC Inc. registering as a money transfer operator before the end of the month to kickstart the process. The new framework permits stablecoins pegged to fiat, and this is the country’s first full regulatory approval to do so. The decision arrives as the global stablecoin market, currently valued at over $250 billion, or ¥37 trillion, remains dominated by dollar-backed tokens like USDC and Tether. Japan wants in on that liquidity, and it’s not doing it for vanity. The push behind this is international remittances, cross-border transactions that the country believes can be faster, cheaper, and more efficient through stablecoins issued under its own currency. JPYC to use public blockchains and real asset reserves The JPYC token will maintain a fixed rate of 1 yen per token, backed by actual assets. The company is using a mix of bank deposits and Japanese government bonds to support every coin it issues. The buying process is straightforward: individuals or businesses can apply for tokens, and after payment is confirmed via bank transfer, the coins are dropped into the customer’s digital wallet. Unlike many corporate-backed digital tokens, JPYC will not build a new blockchain. Instead, all issuance will happen on existing public chains, and the company has no plans for a proprietary chain at this stage. This keeps the infrastructure open and avoids adding more walled gardens to the crypto ecosystem. Ryosuke Okabe, a representative from JPYC, posted on X that stablecoins operate like giant vacuums for government bonds, calling them “absorption machines.” He pointed out that dominant issuers like Tether and Circle have already become some…
