Japanese fintech firm JPYC has revealed its plans to obtain regulatory clearance from the Financial Services Agency (FSA) later this year for its yen-backed stablecoin.
The event would mark the first officially recognised issuance of this type in the country. The token, also named JPYC, has been available in a prior form, but the firm plans to bring it under Japan’s stablecoin framework, supporting wider access to retail and institutional users once its registration as a money transfer business is completed.
The company has outlined ambitious plans for the token, aiming to issue an amount equivalent to nearly USD 7 billion over the next three years, according to Nikkei. Observers note that the approval would position JPYC as the only regulated yen-backed stablecoin in Japan to date, distinguishing it from earlier dollar-pegged projects.
Global stablecoin trends and regulation
Worldwide, stablecoins have seen significant growth, with a combined market capitalisation estimated at around USD 250 billion according to Decrypt. This surge has prompted regulators in multiple jurisdictions to develop new frameworks. For instance, Hong Kong and the United States have recently introduced regulatory measures for stablecoins, reflecting growing institutional and retail interest.
In Japan, stablecoin legislation came into force in June 2023 under the Payment Services Act, with subsequent amendments expanding the regulatory scope in March. Adoption has been gradual, and earlier this year, Circle partnered with local exchange SBI Holdings to launch the first regulated dollar-pegged stablecoin in Japan.
JPYC is intended primarily for payments, including cross-border transfers, rather than speculative trading. Representatives from JPYC have emphasised that the token should be considered an electronic payment instrument whose value is tied to the yen, combining features of digital cash and conventional deposits.
By looking to obtain official recognition, JPYC aims to integrate into Japan’s financial ecosystem while clarifying its function as a currency-denominated digital asset rather than a cryptocurrency.
