Japan to Launch First Yen-Backed Stablecoin by 2025

• Lyla Velez
• August 18, 2025
• News
• 0 Comments

JPYC Inc., a Tokyo-based fintech, will launch Japan’s first yen-backed stablecoin, JPYC, in fall 2025, supported by the Financial Services Agency.

JPYC Stablecoin and Regulatory Oversight

Japan’s yen-backed stablecoin, known as JPYC, will be fully backed by the Japanese yen and government bonds. The Financial Services Agency will regulate the project, ensuring strict compliance. JPYC aims to issue up to 1 trillion yen over three years.

JPYC Inc. transitions from a prepaid model to a fully regulated stablecoin issuer under new laws. Circle’s Series A investment backs the project, drawing interest from hedge funds. Approval requires JPYC Inc. to register as a licensed money transfer business.

The project may boost institutional demand for Japanese Government Bonds, similar to how USDC increased demand for US Treasuries. The yen could become more influential in digital finance as JPYC facilitates global trade settlement and DeFi integration.

The stablecoin’s launch follows Japan’s 2022 and 2023 legislative changes, allowing regulated fiat-backed stablecoins. By serving as a yen alternative to USD stablecoins like USDC, JPYC may shift market demand dynamics.

While specific official statements from the Financial Services Agency or JPYC leadership are unavailable, reports indicate a major regulatory milestone for Japan’s digital assets landscape. As the initiative progresses, governmental oversight remains crucial.

“The approval of JPYC marks a significant milestone in Japan’s regulatory landscape for digital assets, and any forthcoming statements from involved parties could certainly enrich the narrative.”

JPYC’s introduction marks a critical development for Japan, potentially setting a precedent for further non-dollar stablecoin projects, particularly among other Asian G7 economies. The stablecoin’s success could drive broader regulatory and market support.