Japan is set to approve the first stablecoin backed by yen.
Unlike many stablecoins that are primarily used for cryptocurrency trading, the JPYC token is designed for broader purposes. It could facilitate cross-border remittances, corporate payments, and decentralized finance (DeFi). For Japanese companies and individuals, this means faster and more cost-effective transactions without leaving the country's regulated financial system.
JPYC is not the only player. Sumitomo Mitsui Financial Group (SMBC), Japan's second-largest bank, has plans to launch a stablecoin with blockchain companies Ava Labs and Fireblocks. Circle has also entered the Japanese market; its stablecoin USDC received approval from the FSA in March 2025 to operate on SBI VC Trade. Circle plans to expand to Binance Japan, bitbank, and bitFlyer, which together serve millions of users.
