[Breaking] Japan’s FSA Registers JPYC as a Fund Transfer Provider — First Yen-Pegged Stablecoin Approved Domestically
Japan’s Financial Services Agency (FSA) has officially registered fintech company JPYC as a fund transfer provider. As a result, the first domestic yen-pegged stablecoin, “JPYC,” is expected to launch as early as this fall.
JPYC is designed to maintain a value of “1 JPYC = 1 yen,” backed by bank deposits and Japanese government bonds to ensure stability. Once issued, it is expected to be used for international remittances, e-commerce payments, and DeFi applications.
As of 2025, the global stablecoin market has exceeded $286 billion, largely dominated by USD-based stablecoins such as Tether (USDT) and USDC. In contrast, Japan lagged behind in regulatory development until the amended Payment Services Act came into effect in June 2023. This law defined stablecoins as “electronic payment instruments,” distinct from traditional crypto assets. The revised law restricts issuance to “banks,” “trust companies,” or “registered fund transfer providers,” ensuring investor protection and financial system stability.
JPYC functions as a “digital version of the yen.” Tokens are issued upon bank transfer and reflected in the user’s digital wallet. Initially, it will be issued on blockchains such as Ethereum, Avalanche, and Polygon, ensuring transparency and international interoperability.
JPYC’s approval holds global significance. In July 2025, U.S. President Trump signed the “GENIUS Act” regulating stablecoins, mandating backing by USD-denominated assets and annual audits. This set a precedent for transparency. Meanwhile, Japan’s JPYC stands out as a yen-based solution, potentially improving cross-border remittances in Asia and generating new demand for Japanese government bonds.
Stablecoins are categorized based on the type of backing:
JPYC falls under the “fiat-backed” category, regarded as the most stable form.
JPYC marks a milestone in Japan’s digital currency strategy. As a regulated yen-pegged stablecoin, it could become a new option for international payments and may influence monetary policy and capital markets. In the coming months, efforts to improve user accessibility and strengthen the yen’s global presence will draw close attention.
For more updates, visit the FIXIO Blog.
Note: This article is for informational purposes only and does not constitute a recommendation for any specific investment, legal, or financial action. The content is based on information available at the time of writing and may change in the future. All investment decisions should be made at your own discretion and responsibility.
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