Japan "gives the green light" for the first yen-backed stablecoin, aiming to issue 6.78 billion USD

The Financial Services Agency of Japan (FSA) is preparing to license fintech company JPYC to issue the first stablecoin pegged to the Japanese yen. This is a significant turning point in Japan's financial policy, which could set a precedent for other countries. #Japan

Potential and operational mechanism

The stablecoin #JPYC will be pegged 1:1 to the Japanese yen, backed by bank deposits and government bonds. JPYC aims to issue 1 trillion yen (approximately 6.8 billion USD) within three years to serve multiple purposes: remittances, corporate payments, and DeFi applications.

By diversifying currency in the currently USD-dominated stablecoin market, JPYC could attract institutional and individual investors, including those looking to take advantage of interest rate differentials (carry trade).

Market context and acceptance

Japan's decision comes amid a rapidly growing stablecoin market, with a total market capitalization exceeding 277 billion USD. This move also aligns with the global trend of stablecoin acceptance, as evidenced by new legislation like the US GENIUS Act and initiatives from major companies like Circle, Stripe, Robinhood, Shopify, Amazon, and Walmart.

The participation of a major economy like Japan will strongly promote the development of stablecoins in particular and the cryptocurrency sector in general, making this technology more prevalent in the global financial system. #anh_ba_cong