Japan Greenlights First Yen Stablecoin Amid $6.78 billion Goal

- FSA set to revolutionize payments with yen-backed stablecoin. - JPYC stablecoin eyes trillion-yen issuance after approval. Japan’s Financial Services Agency (FSA) is set to approve the country’s first yen-denominated stablecoin as early as this autumn, a move that marks a significant milestone in Japan’s digital currency regulation. On August 17, 2025, The Block reported that Tokyo-based fintech company JPYC will lead this development. To comply with regulations, JPYC will register as a money transfer business with the FSA in August. The JPYC stablecoin will be backed by highly liquid assets, such as bank deposits and Japanese government bonds, ensuring its value remains pegged to the yen. JPYC plans to commence token sales shortly after regulatory approval. JPYC has outlined ambitious goals for its stablecoin. The company aims to issue 1 trillion yen (approximately $6.78 billion) worth of the digital currency within three years. Its primary focus includes streamlining cross-border remittances, facilitating corporate payment solutions, and advancing decentralized finance (DeFi) applications. Additionally, hedge funds have already expressed interest in the token, which highlights its potential appeal to institutional investors. Japan's progressive regulatory framework for stablecoins provides the foundation for this development. In June 2022, the Japanese parliament amended the Payment Services Act, which officially recognized fiat-pegged stablecoins as “Electronic Payment Instruments.” Subsequent updates further classified these as “currency-denominated assets” and established strict issuance rules. Under these regulations, only licensed banks, trust companies, and regulated service providers can issue them.