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Japan's first approved stablecoin features Circle.
The Financial Services Agency of Japan (FSA) is set to approve the first stablecoin pegged to the yen, issued by the fintech company JPYC Inc. According to Nikkei, JPYC will be registered as a money transfer service provider this month, and the stablecoin is expected to launch by the end of 2025. This is an important step in the effort to modernize Japan's financial system.
Founded in 2019 in Tokyo, JPYC specializes in blockchain and stablecoin. In 2021, Circle – the issuer of USDC – invested in the company, helping to raise 500 million yen in Series A funding. The JPYC stablecoin functions as a prepaid payment tool, backed by bank deposits and government bonds, maintaining a 1:1 ratio with the yen.
The FSA expects JPYC to promote cashless payments, remittances, and business transactions, although the risk of money laundering remains a challenge. This is a milestone that directly competes with USD-pegged stablecoins.