JPYC Poised to Become Japan’s First Regulated Yen-Backed Stablecoin

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The Tokyo-based fintech JPYC has secured regulatory approval to issue Japan’s first officially regulated stablecoin pegged to the yen. 

JPYC had already been operating a version of this stablecoin, but the Financial Services Agency (FSA) has now granted JPYC Japan’s first funds transfer service provider license under the revised Payment Services Act. 

This clears the way for the launch of the JPYC stablecoin under Japan’s stablecoin framework as early as this fall.

JPYC is expected to soon launch a new issuance and redemption platform called JPYC X. The coin will offer full convertibility to the yen and will be backed by government bonds and bank deposits. Cryptocurrency exchange MEXC reports JPYC estimates the market for yen stablecoins may reach ¥40–83 trillion ($270–560 billion) in the next five years. 

Meanwhile, JPYC’s CEO, Noritaka Okabe, stressed:

I’m spreading the word! JPYC is a means of electronic payment, not a cryptocurrency. It’s a currency-based asset with a value linked to fiat.

This move comes amid greater regulatory interest in stablecoins in the APAC region, including Hong Kong and South Korea, as well as in jurisdictions like the EU and the USA.