Editor’s Note: This story has been updated to include comments from the Financial Services Agency of Japan
Japan is set to approve the nation’s first yen-denominated stablecoin, the country’s market regulator confirmed Tuesday.
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JPYC Stablecoin On The Way In Japan
A Financial Services Agency spokesperson told Benzinga that JPYC Inc., the stablecoin’s issuer, has been registered as a regulated entity authorized to issue yen-backed stablecoins.
JPYC also revealed in an X post that it has become the first fund transfer service provider in Japan to issue cryptocurrencies that are pegged 1:1 to the national currency.
The company said the stablecoin will be deployed on Ethereum ETH/USD, Avalanche AVAX/USD and Polygon POL/USD.
The news was first reported by Nikkei on Monday. To ensure its value aligns with the yen, it will be underpinned by liquid assets such as deposits and government bonds, the report said.
The stablecoin’s issuer, JPYC Inc., is expected to register as a money transfer business within the month, aiming to issue roughly $7 billion of the new cryptocurrency in the next three years.
To ensure its value aligns with the yen, it will be underpinned by liquid assets such as deposits and government bonds, the report said.
See Also: Trump-Backed American Bitcoin Eyes Japanese, Hong Kong Firms For Crypto Acquisition: Report
Circle Is Backing JPYC Issuer
JPYC CEO Noritaka Okabe disclosed in an X post that the company has received investments from Circle Internet Group Inc. CRCL, the issuer of the world’s second-largest stablecoin USDC USDC/USD and a recent Wall Street entrant.
Circle had expressed interest in launching a stablecoin in Japan, following the implementation of legislation governing stablecoins in the country.
Price Action: Shares of Circle closed 7.20% higher at $149.26 during Friday’s regular trading session.
As of this writing, CRCL exhibited a low value score — a percentile-ranked composite metric that evaluates a stock’s relative worth by comparing its market price to fundamental measures — as of this writing. Visit Benzinga Edge Stock Rankings to find out the best performers on this metric.
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