Japan Approves Its First-Ever Yen-Pegged Stablecoin, Backed by Government Bonds

• Japan’s top financial regulator has approved the country’s first-ever yen-pegged stablecoin.
• The new JPYC token will be fully backed by domestic deposits and Japanese Government Bonds.
• The move is a major step in Japan’s push to create a regulated digital finance sector.

Japan has officially entered the stablecoin race after the country’s Financial Services Agency (FSA) granted regulatory approval to JPYC Inc., a Tokyo-based fintech startup, to issue Japan’s first yen-pegged stablecoin.

The token, also branded as JPYC, is expected to debut in the autumn of 2025 and will maintain a one-to-one peg with the Japanese yen. In a statement, Chief Executive Noritaka Okabe confirmed the stablecoin will be fully backed by domestic deposits and Japanese Government Bonds (JGBs), ensuring compliance with the country’s updated Payment Services Act.

By operating under a funds transfer service provider license, JPYC is transitioning from a prepaid token operator to a fully regulated issuer.

Unique, Zero-Fee Business Model

Unlike many global stablecoin issuers, JPYC will not charge transaction fees. Instead, its business model will rely entirely on the interest i…

The post Japan Approves Its First-Ever Yen-Pegged Stablecoin, Backed by Government Bonds appeared first on Coin Edition.