Japan is set to approve its first yen stablecoin, JPYC, this autumn, with an issuance scale targeting 6.78 billion USD.

According to a report by the Nikkei, Japan's Financial Service Agency (FSA) is preparing to approve the issuance of the country's first stablecoin pegged to the yen by local fintech company JPYC this fall. This initiative will mark a significant step for Japan in the integration of digital assets with fiat, and it could potentially change the landscape of international remittances and corporate payments.

JPYC Issuance Plan: Target of 1 Trillion Yen in Three Years

JPYC is headquartered in Tokyo and plans to register as a remittance company with the Financial Services Agency in August, launching its token sale within a week after approval. The grand goal set by the company is to issue a yen-denominated stablecoin worth 1 trillion yen (approximately 6.78 billion USD) within three years, and it has attracted several hedge funds expressing interest in collaboration.

Stablecoin Support Mechanism and Application Scenarios

To ensure the stability pegged to the Japanese yen, JPYC will use high liquidity assets such as deposits and Japanese government bonds as reserve support. Potential applications include:

International remittances: reduce cross-border payment costs and time

Corporate Payments: Enhance Settlement Efficiency

DeFi Ecosystem: Providing Stable Yen Assets for Decentralized Finance

Background of Japan's Stablecoin Regulation

Japan is at the forefront of global stablecoin regulation.

June 2022: Congress passed an amendment to the "Payment Services Act", defining stablecoins pegged to fiat as "electronic payment tools", and stipulating that only licensed banks, trust companies, and specific service providers may issue them.

Year 2023: Officially include stablecoins in the category of "currency-denominated assets" to pave the way for market legalization.

This series of regulatory measures lays a legal foundation for the issuance plan of JPYC and provides a clear compliance path for other potential issuers.

The Stablecoin Layout of Japanese Financial Giants

JPYC is not the only participant focused on this area. Japan's second-largest bank, Sumitomo Mitsui Banking Corporation (SMBC), announced earlier this year that it will collaborate with Ava Labs and Fireblocks to launch its own stablecoin, demonstrating that large financial institutions in Japan view stablecoins as an important tool for future payments and capital markets.

Conclusion

If JPYC is approved, Japan will welcome its first yen-denominated stablecoin, which is not only an important milestone for the digital asset market but may also drive the adoption of the yen in international payments and the DeFi space. As more financial institutions join, Japan could become the core hub for stablecoin innovation in Asia.