Japan Approves Yen-Backed Stablecoins for 2025 Issuance: Regulatory Shift to reshape financial landscape

In a significant regulatory development, Japan is set to approve its first yen-backed stablecoins in fall 2025. The initiative is spearheaded by JPYC Inc., backed by the Financial Services Agency (FSA), marking a crucial step towards increased adoption of fiat-pegged digital currencies within the country. JPYC aims to maintain a 1:1 peg with the yen, supported by substantial liquid assets, for these stablecoins. This regulatory change could lead to significant implications for Japan’s financial landscape and crypto industry.