Japan’s Financial Services Agency will register Tokyo-based fintech company JPYC Inc. as a money-transfer business later this month, clearing the way for the country’s first yen-denominated stablecoin.
Japan’s Financial Services Agency will register Tokyo-based fintech company JPYC Inc. as a money-transfer business later this month, clearing the way for the country’s first yen-denominated stablecoin. The token, also called JPYC, is designed to maintain a one-to-one peg with the Japanese yen and is backed by deposits and short-term Japanese government bonds.
JPYC plans to begin issuing the coin as early as this autumn and aims to place ¥1 trillion (about US$6.8 billion) worth of the tokens into circulation within three years. The approval comes as the global stablecoin market, largely dominated by dollar-linked tokens, has grown to more than US$250 billion.
Japanese regulators see the move as a step toward lowering cross-border payment costs and fostering blockchain-based financial services. While SBI VC Trade already lists US-dollar stablecoins in Japan, JPYC’s clearance marks the first time a yen-pegged asset has been authorized for domestic issuance.
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Source: https://thedefiant.io/news/regulation/japan-fsa-clears-jpyc-first-yen-pegged-stablecoin-fall-launch-b7bb25da