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Japan’s financial regulator is preparing to approve JPYC’s yen-backed stablecoin. The approval is expected from next month, with issuance beginning soon after.
Japan is entering a new chapter in digital finance. The Financial Services Agency (FSA) is preparing to give the green light to the country’s first stablecoin tied to the yen. According to a Nikkei report, the approval could come as early as this fall, setting the stage for a significant step in Japan’s financial innovation.
JPYC to Lead Stablecoin Launch
Tokyo-based fintech company JPYC will issue the stablecoin. The firm intends to complete its registration as a money transfer business with the FSA in August. Once the registration is successful, token sales will begin the following week.
Ambitious Growth Plan
JPYC aims to issue up to 1 trillion yen (approximately $6.78 billion) worth of stablecoins within the next three years. Interest is already emerging from hedge funds that see potential in the project. If successful, JPYC’s plan could position it as a major player in Japan’s evolving crypto ecosystem.
Japan’s Evolving Stablecoin Regulations
Japan has been ahead of many nations in setting rules for stablecoins. In June 2022, lawmakers amended the Payment Services Act to recognize fiat-pegged tokens as “Electronic Payment Instruments.”
The law restricts issuance to licensed banks, trust companies, and registered service providers.
In 2023, stablecoins were further classified as “currency-denominated assets,” clarifying their legal standing and giving investors greater confidence.
Rising Competition in the Stablecoin Market
JPYC is not alone in this race. Japan’s major banks and financial groups are also entering the space. Earlier this year, Sumitomo Mitsui Financial Group (SMBC), the country’s second-largest bank, announced plans to launch its own stablecoin in partnership with blockchain firm Ava Labs and custody provider Fireblocks.