The Japan Financial Services Agency (FSA) has granted JPYC a license to operate as a money transfer service provider, making it the first company in Japan to issue a compliant yen stablecoin, marking a milestone for the digitalization of the yen. (Background: It's all sold out! Japanese bitcoin reserve company Value Creation liquidates BTC, what did it see?) (Additional background: Real-life FX warriors! Japanese live streamer All in binary options, 30,000 turns into 150,000 → 0 yen) On the 18th, the Japan Financial Services Agency (FSA) approved the official issuance of the domestic yen stablecoin JPYC this fall, becoming the first institution in Japan to issue a stablecoin pegged to the yen at a 1:1 ratio. This milestone signifies that Japan has taken the lead in providing clear and actionable compliance examples in the global stablecoin regulatory race, and has taken a key step in the digitalization process of the yen. Multi-chain layout expands the coverage of the yen. According to the press release from JPYC, the stablecoin will be issued simultaneously on multiple public chains including Ethereum, Avalanche, and Polygon, and will follow the ERC-20 standard to ensure seamless integration with existing wallets and smart contracts. Future application scenarios include cross-border remittances, business-to-business payments, and deeper integration with decentralized finance (DeFi) and NFT marketplaces. For institutional clients, the reserve of the stablecoin will drive additional demand for Japanese government bonds; for users, it is expected to reduce reliance on US dollar stablecoins and strengthen the presence of the yen in the digital asset ecosystem. (Fund settlement law) lays the regulatory framework. JPYC was approved due to core support from the amended (fund settlement law) that came into effect in June 2023. The regulation for the first time defined stablecoins as “electronic payment means,” separating them from the more volatile “cryptographic assets.” The provisions require that the issuing entities must be banks, trust companies, or operators with money transfer licenses, and reserves can only consist of highly liquid yen deposits or government bonds. This regulation reduces the credit risk of stablecoins while also raising the entry barriers for operators, reflecting Japan's long-standing focus on financial stability and cautious promotion of innovation. Balancing innovation and risk demonstration With the official circulation of the yen stablecoin, Japan is expected to secure a place in the global digital finance competition, and the true test of this transformation will rest on market acceptance and cybersecurity resilience. In the future, if other countries want to replicate Japan's experience, how to adjust local regulations and financial infrastructure will become a key observation point. The milestone of JPYC announces that Japan is no longer merely an observer but is actively bridging traditional finance and the Web3 world. Next, whether the liquidity of the yen on-chain can spread quickly and whether it will bring structural changes to the global stablecoin landscape remains to be seen. Related news Japan's largest Osaka Exchange plans to launch cryptocurrency derivatives, JPX is also considering launching cryptocurrency ETFs. Metaplanet CEO interview: From Japanese hotels to 'Asia Micro Strategy', the stock king's Bitcoin layout. Japanese gaming giant Gumi purchases 1 billion yen worth of Bitcoin, the next step is to push for a crypto fund focused on institutions.

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