- Japan’s Financial Services Agency is expected to approve the country’s first yen-pegged stablecoin in late 2025, led by Tokyo-based firm JPYC.
- The stablecoin will maintain a 1:1 value with the yen and be backed by liquid assets including bank deposits and Japanese government bonds.
- JPYC’s spokesperson argues the stablecoin could stabilise Japan’s financial system by purchasing government bonds and preventing rising borrowing costs.
- Japan’s crypto involvement is growing with companies like Metaplanet adopting Bitcoin treasury strategies, though their stock performance has declined due to increased competition.
Stablecoin adoption is increasing following the US GENIUS Act. The latest is that Japan is now moving to enter the market with a yen-backed stablecoin. The Nihon Keizai Shimbun reported on Sunday that Japan’s Financial Services Agency (FSA) is likely to approve a yen-pegged stablecoin in late 2025.
Tokyo-based firm JPYC will lead the rollout of the first yen-pegged stablecoin, designed to maintain a 1:1 value with the yen and backed by liquid assets such as bank deposits and government bonds.
Unlike the dollar-pegged stablecoins that dominate Japan’s market, JPYC will provide a domestic alternative as part of the US$286 billion (AU$439 billion) global stablecoin sector.
Ryosuke Okabe, a spokesperson for JPYC, said in a post on CryptoTwitter that stablecoins are “massive government bond absorption machines”, pointing to Tether and USDC as “major buyers of US Treasury bonds”.
He highlighted JPYC’s potential future role, stating:
In Japan, JPYC will likely start buying up Japanese government bonds in large quantities going forward.
Ryosuke Okabe, JPYC
Okabe further argued that JPYC could play a critical role in stabilising Japan’s financial system, suggesting that without strong stablecoin adoption, government bond yields – and by extension mortgage and loan rates – will continue to rise.
He suggests that JPYC is not merely a digital asset, but as a potential safeguard for everyday workers and businesses against higher borrowing costs.
Related: XRP Tops US$3 as 94% of Supply Turns Profitable – But History Warns of Reversals
Japan’s Role in Crypto
Japan is becoming increasingly active in the crypto space. Metaplanet has emerged as a major Bitcoin play after adopting Michael Saylor’s Bitcoin treasury strategy. The adoption of Bitcoin on corporate balance sheets has become increasingly mainstream.
However, Metaplanet’s stock price has crashed over the past few months, falling nearly 37% in the past month alone, partly because investors now have alternative options for Bitcoin exposure.
Saylor’s Bitcoin-as-reserve strategy has been replicated by dozens, if not hundreds, of other companies. As a result, early adopters such as Metaplanet – and indeed Strategy (formerly MicroStrategy) – have become comparatively less attractive.
Related: U.S. Treasury Seeks Input on Digital ID Tools to Tackle Illicit Crypto Finance
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