Monex plans to back yen stablecoin with Japanese government bonds - TV Tokyo

Monex plans to back yen stablecoin with Japanese government bonds - TV Tokyo

Japan has taken a significant step in the digital finance sector by approving its first yen-pegged stablecoin. The Financial Services Agency (FSA) has granted regulatory approval to JPYC Inc., a Tokyo-based fintech startup, to issue the JPYC token. This stablecoin will maintain a one-to-one peg with the Japanese yen and will be fully backed by domestic deposits and Japanese Government Bonds (JGBs) [1].

The JPYC token is expected to debut in the autumn of 2025 and will operate under a funds transfer service provider license. This transition marks a shift from a prepaid token operator to a fully regulated issuer, ensuring compliance with the country's updated Payment Services Act [1].

Unlike many global stablecoin issuers, JPYC will not charge transaction fees. Instead, its business model will rely on the interest income generated by the JGB reserves backing the tokens. For every ¥1 trillion issued, the firm estimates it will generate gross annual revenue of approximately ¥5 billion from bond yields [1].

The company expects its first users to be hedge funds, family offices, and institutional investors within Japan. Over time, JPYC aims to expand its adoption to international remittances and corporate settlements [1].

The approval of JPYC as a regulated yen-backed stablecoin signals Japan's intention to take a more proactive role in shaping digital asset markets. This move comes as global regulation of stablecoins accelerates, with markets such as the United States and Hong Kong introducing licensing and oversight regimes [2].

The launch of JPYC is significant for the yen's role in global markets. By introducing a fully regulated, blockchain-based yen stablecoin, Japan aims to enhance the currency's utility in international finance [1].

References:
[1] https://coinedition.com/japan-approves-its-first-ever-yen-pegged-stablecoin-backed-by-government-bonds/
[2] https://www.marketscreener.com/news/blockchain-bites-japan-greenlights-first-regulated-yen-backed-stablecoin-pay-me-in-stables-bullis-ce7c50dbd189f52d