The Japanese financial service agency (FSA) is preparing to approve the release of yen-denominated stablecoins early in this fall, marked the first time the country will allow a domestic fiat-pegged digital currency.
Tokyo-based firm JPYC will register as a business transfer business within the month and lead to the Rollout, Japanese news outlet Nihon Keizai Shimbun reported On Sunday.
JPYC is designed to maintain a fixed amount of 1 JPY = 1 yen, supported by high liquid owners such as bank deposits and Japanese government bonds. After purchasing applications from individuals or corporations, tokens are issued by moving the bank to Digital Wallets.
The approval will come as the global Stablecoin market, led by dollar-focus assets such as USDT (USDT) and USDC of the Circle (USDC), has expanded to over $ 286 billion. While the US dollar stablecoins already have a foothold in Japan, it will be the first country -based offering.
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Yen Stablecoins can reshape Japan’s bond market
In a recent -only Post In X, Okabe, a representative of the JPYC release company, Yen Stablecoins said it could have a significant impact on the Japanese bond market. He noted that in the US, the leading stablecoin issues became the main buyer of the US Treasurys, holding them as collateral for circulating -shifting tokens.
A similar trend in Japan, he suggested, could boost demand for Japanese government bonds (JGB) if JPYC was gaining extensive adoption. “JPYC is likely to start buying Japanese government bonds in large quantities forward,” he wrote.
Okabe also noted that countries are caught up in the risk of developing stablecoin of higher government bond rates, as they have missed a new class of institutional demand. He argued that the financial policy considerations are now driving governments, including Japan, to speed up Stablecoin frameworks.
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Circle launched USDC in Japan
As reported, circle USDC officially launched in Japan on March 26.
The approval, granted on March 4, marked the first time the country’s financial service agency had removed a foreigner released Stablecoin under its regulatory framework.
At this time, Circle said it plans to expand USDC lists in Binance Japan, Bitbank, and Bitflyer, two of the rankings of Japan’s largest exchange, each processing of more than $ 25 million in the sunny volume and drawing more than 1.85 million monthly visits.
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