Japan's Compliance Yen stablecoin JPYC is launching this fall!

#btc# ETh#pi
Multi-chain layout: ETH, AVALANCHE, POLYGON simultaneous issuance
The Financial Services Agency of Japan ( (FSA) ) approved the official issuance of the domestic yen stablecoin JPYC yesterday ( on 18), becoming the first institution in Japan to issue a stablecoin pegged to the yen at a 1:1 ratio. This milestone means that Japan has taken the lead in providing clear and actionable compliance examples in the global stablecoin regulatory race, and it also marks a critical step forward in the digitization process of the yen.
Multi-chain layout to expand the coverage of the Japanese yen.
The press release from JPYC states that the stablecoin will be issued simultaneously on multiple public chains such as Ethereum, Avalanche, and Polygon, and will adhere to the ERC-20 standard to ensure seamless integration with existing wallets and smart contracts.
Future application scenarios include cross-border remittances, business-to-business payments, and deeper integration with decentralized finance ( DeFi ) and NFT marketplaces. For institutional clients, stablecoin reserves will drive additional demand for Japanese government bonds; for users, it is expected to reduce reliance on USD stablecoins and strengthen the presence of the Japanese yen in the digital asset ecosystem.

The "Capital Settlement Law" lays the regulatory framework.
JPYC has been approved, with core support coming from the amendment to the "Fund Settlement Act" that took effect in June 2023. The regulation for the first time defines stablecoins as "electronic payment means," separating them from the highly volatile "crypto assets."
The regulation requires that the issuing entity must be a bank, trust company, or an operator with a capital movement license, and the reserves can only be high liquidity yen deposits or government bonds. This regulation reduces the credit risk of stablecoins on one hand, while also raising the entry threshold for operators, reflecting Japan's long-standing focus on financial stability and a cautious approach to promoting innovation.