Japan may approve the first yen stablecoin JPYC in October
Japanese regulators are accelerating the compliance process for its first yen-backed stablecoin, JPYC, which may be approved for issuance as early as October. This stablecoin is expected to be primarily used in scenarios such as cross-border remittances, corporate payments, and decentralized finance transactions.
Unlike other regions around the world, Japan has adopted a regulatory approach of "establishing rules before developing," clearly stipulating that only licensed remittance companies, trust companies, and banks can issue stablecoins.
According to Nikkei News, Tokyo-based fintech company JPYC will issue a stablecoin named JPYC, which is fully backed by traditional assets such as bank deposits and government bonds, and strictly adheres to the provisions of the newly revised 2023 "Fund Settlement Act," classifying stablecoins as "currency-denominated assets."
JPYC's business model targets the blue ocean market of cross-border payments and corporate settlements. The company plans to issue stablecoins worth 1 trillion yen (approximately 68 billion USD) within the next three years and has already initiated the remittance business license application process.
It is noteworthy that some hedge funds and family offices have shown strong interest, derived not only from the traditional advantages of yen arbitrage trading but also potentially extending into the digital currency realm, reflecting that institutional investors are looking for compliant stablecoin products beyond USDT and USDC.
Against the backdrop of the global stablecoin market exceeding 250 billion USD, the launch of JPYC is particularly significant. Although dollar stablecoins currently hold over 90% market share, the emergence of a yen stablecoin could change the competitive landscape in the Asia region.
Industry insiders also predict that by 2030, the global stablecoin market could reach 4 trillion USD, providing ample room for the development of yen stablecoins.
In summary, amidst diverse global regulatory attitudes, Japan provides clear regulatory guidance for the industry through transparent legislation. This "regulatory-first" strategy not only manages financial risks but also leaves room for innovation.
With the subsequent launch of the yen stablecoin JPYC, the Asian digital currency market may usher in a new round of reshuffling, and whether the yen can maintain its status as an international currency in the digital age is worth ongoing attention.
