The Financial Services Agency will approve JPYC this month, and the first yen stablecoin is about to debut.
The Financial Services Agency (FSA) will approve the issuance of the yen stablecoin '$JPYC' by fintech company JPYC, making it the first officially recognized fiat-backed digital currency in Japan. According to reports from the Nikkei, the FSA is expected to register the company as a money transfer operator within this month and begin sales in a few weeks.
$JPYC adopts a fixed value design of 1 $JPYC = 1 yen, supported by highly liquid assets such as bank deposits and Japanese government bonds. Individual and business users can send $JPYC to digital wallets via bank transfer after submitting a purchase application. Currently, in Japan, SBI Holdings' SBI VC Trade has begun handling dollar-pegged stablecoin '$USDC', but the yen stablecoin will be the first approved case.
This approval comes at a time when the global stablecoin market is rapidly expanding, with dollar-pegged assets like $USDT and Circle's $USDC dominating a market size exceeding $286 billion. While dollar stablecoins have established a foothold in Japan, this will be the country's first yen-based stablecoin product.
Further Reading
USDC officially enters Japan! The stablecoin is the first to be recognized and listed in Japan, how will it change the financial landscape?
The issuing company of JPYC predicts a large purchase of Japanese government bonds.
The representative of the JPYC issuing company, Noritaka Okabe, emphasized that 'JPYC is an electronic payment method, not a cryptocurrency asset.' He stated that it is a currency structured as a value linked to the fiat currency (yen), possessing the dual advantages of digital cash and deposits.
Noritaka Okabe offers important insights into the impact of stablecoins on the bond market, citing the U.S. case where the world's largest stablecoin issuers, Tether ($USDT) and Circle ($USDC), hold significant amounts of U.S. government bonds as supporting assets for their issuance, essentially becoming major purchasers of U.S. government bonds.
He predicts that if JPYC gains widespread popularity, it will 'start purchasing Japanese government bonds in large quantities', bringing a similar effect to the Japanese bond market.
Image source: X/@noritaka_okabe Noritaka Okabe predicts that if JPYC gains widespread popularity, it will 'start purchasing Japanese government bonds in large quantities.'
Noritaka Okabe further mentions that in countries where stablecoin issuance is inactive, 'government bond yields will continue to rise,' suggesting that there are financial policy considerations behind various countries' eagerness to cultivate stablecoin markets.
Circle is the first to enter the Japanese market, and there are precedents for foreign currency stablecoins.
Before the approval of the Japanese yen stablecoin, Circle officially launched $USDC in Japan on March 26, following regulatory approval at the SBI VC Trade cryptocurrency exchange. This approval was granted on March 4, symbolizing the first time the Financial Services Agency (FSA) has approved a foreign-issued stablecoin under its regulatory framework.
Circle at that time indicated plans to expand the listing of $USDC to include Binance Japan, bitbank, and bitFlyer, two of which are among Japan's largest exchanges, with a daily trading volume exceeding $25 million and monthly visits exceeding 1.85 million. This lays the regulatory foundation for the launch of $JPYC, demonstrating the Japanese government's proactive and open attitude towards the stablecoin market, creating a fair competitive environment for both domestic and foreign stablecoin providers.
Further Reading
It's been a year since the legalization of stablecoins in Japan! A look at the three major yen stablecoins and why their development is limited.
Japan is leading the way! JPYC partners with DSK technology providers, will convenience stores accept stablecoin payments?
This content is generated by Crypto Agent summarizing various information, reviewed and edited by (Crypto City), and is still in the training phase, which may contain logical biases or information errors. The content is for reference only and should not be considered investment advice.
'The first yen stablecoin is about to launch, the Japanese Financial Services Agency has nodded, and JPYC is expected to be approved this month.' This article was first published in 'Crypto City.'
