The Financial Agency of Japan plans to allow the launch of the country’s first stablecoin backed by the national currency—the yen. According to local media reports, this digital asset will be issued by the Tokyo-based fintech company JPYC.
This is reported by Finway
Launch of JPYC Stablecoin and Its Significance for the Market
JPYC is expected to become the first stablecoin to receive official approval from regulators in Japan. The project launch is scheduled for fall 2025, following the anticipated registration of JPYC as a money transfer operator in the near future.
The global stablecoin market is projected to exceed $250 billion by 2025, with most of these assets pegged to the US dollar. Japan, in turn, sees stablecoins as a tool to simplify cross-border transfers and enhance the efficiency of financial transactions.
“In Japan, such assets are also viewed as a tool for cross-border transfers, according to the report.”
Legal Initiatives and Global Context
In addition to preparing for the launch of the JPYC stablecoin, the Financial Agency of Japan recently proposed changing the status of cryptocurrencies within the country’s legal framework. This could lead to the emergence of exchange-traded crypto funds and the introduction of a fixed tax rate of 20% on profits from cryptocurrencies.
The global trend of issuing stablecoins pegged to national currencies is gaining momentum. For instance, South Korean company Kakao also plans to create its own stablecoin pegged to the won on the Kaia blockchain platform.
The launch of the first yen-backed stablecoin will mark an important milestone for the regulation of digital assets in Japan and could significantly impact the development of innovative financial technologies in the region.