Japan Approves First Yen-Backed Stablecoin: Impact on Finance and DeFi

Japan has taken a significant step forward in its regulatory landscape for stablecoins by granting approval to JPYC Inc.’s yen-backed stablecoin. This groundbreaking development, slated for launch by fall 2025 in Tokyo, signifies Japan’s commitment to fostering financial innovation under strict regulatory frameworks. The stablecoin is fully collateralized by Japanese yen through bank deposits and government bonds, aiming to reduce volatility and provide enhanced trust in digital transactions.