Japan is set to approve the country’s first yen-pegged stablecoin this fall.
According to Nikkei, a Tokyo-based fintech firm will apply for a money transfer license from the Financial Services Agency (FSA) this month to launch its stablecoin. Once the registration process is completed, the company is expected to begin token sales shortly after.
The yen-backed stablecoin will be supported by highly liquid assets such as bank deposits and government bonds. With this backing, the company aims to facilitate its use in international money transfers, corporate payments, and within the DeFi ecosystem. The firm targets issuing up to 1 trillion yen (approximately $6.8 billion) worth of stablecoins within three years and has already attracted interest from hedge funds.
Japan has been one of the early movers in stablecoin regulation. The Payment Services Act, enacted in 2022, defined fiat-pegged stablecoins as “Electronic Payment Instruments” and restricted issuance to licensed banks, trust companies, and authorized providers. With both fintech startups and major banks entering the field, Japan is solidifying its leading role in Asia’s stablecoin landscape.
