Japan’s First Yen-Backed Stablecoin Poised For Approval This Fall

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Japan’s Financial Services Agency (FSA) is preparing to approve the country’s first Yen-denominated stablecoin. This will be the first time a domestically issued, fully collateralized Yen stablecoin is expected to go live at national scale.

Japan’s stablecoin can be approved and launched as early as this autumn. Furthermore, Tokyo-based fintech JPYC is set to lead issuance under Japan’s revised regulatory framework. 18 August 2025 local media reports also confirmed that JPYC aims to issue roughly $7 billion of the new cryptocurrency over three years.

The stablecoin will be pegged 1:1 to the Japanese Yen. It will be backed by highly liquid assets such as bank deposits and Japanese government bonds (JGBs).

JAPAN’S NIKKEI HITS RECORD HIGH

JAPAN SET TO APPROVE FIRST-EVER YEN-BASED STABLECOIN

— Evan (@StockMKTNewz) August 18, 2025

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How Will Yen-Backed Stablecoin Unlock Benefits?

The FSA approval of Yen-backed stabelcoins is anticipated as early as this autumn. JPYC will begin sales shortly after regulatory sign-off. Tokens are expected to be issued via regulated channels.

Notably, Yen-backed stablecoins may help bring faster, cheaper cross-border remittances. It can also become a medium of exchange for DeFi integrations in Japan, reducing reliance on dollar-pegged tokens for local activity. 

Issued under the Payment Services Act framework that treats fiat-pegged tokens as currency-denominated assets, the issuance of the stablecoin will be limited to licensed banks, trust companies and registered providers. 

While JPYC may be first, it won’t be alone. Major Japanese banks and global stablecoin firms are working towards a regulated Yen ecosystem.

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Japan Moves To Reform Stablecoin Regulations And Crypto Brokerage Regulations

Furthermore, Japan has been introducing reforms in the regulation of stablecoins and crypto brokerage businesses. According to a local media report dated 19 February 2025, the new policy includes allowing stablecoins to be backed by short-term government bonds and certain fixed-term deposits in addition to the current demand deposits.

Interestingly, the aim of the newly introduced policy is to set an upper limit of 50% on the amount of new assets that can be incorporated, striking a balance between improved convenience and safety.

EXPLORE: Japan Moves To Reform Stablecoin Regulations And Crypto Brokerage Regulations

Japan Backs Pakistan’s CBDC Pilot Program

Pakistan will pilot its first central bank digital currency (CBDC) later this year with Japan’s Soramitsu, using their blockchain platform. #CBDC #DigitalRupee #PakistanFinance #Blockchain #Fintech #SBP #DigitalPakistan pic.twitter.com/4bwOq4Z7Nl

— TechJuice (@TechJuicePk) August 13, 2025

Japanese blockchain technology developer, Soramitsu, is working with the State Bank of Pakistan to launch a pilot program for a CBDC this year. Can this partnership fast-track Pakistan’s timeline for launching a CBDC?

Jameel Ahmad, governor of the State Bank of Pakistan, is working closely with Soramitsu. Pakistan’s move indicates the country’s intent to modernize its financial structure, especially in partnership with US President Donald Trump.

Japan’s technical expertise in fintech and digital currency regulation will be leveraged by Pakistan to design a secure, efficient, and scalable CBDC framework. 

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Key Takeaways

Japan is entering the stablecoin mainstream with a tightly supervised, yen-pegged instrument. It will connect blockchain efficiency with the credibility of cash and government bonds.

With JPYC expected to lead issuance and approval targeted for this fall, the move could rewire domestic payments. It can also streamline remittances, and add a new, steady buyer to Japan’s bond market.

 

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