Japan’s Financial Services Agency is set to approve yen-denominated stablecoins this fall, allowing the country’s first domestic fiat-pegged digital currency. Tokyo-based JPYC will lead the rollout, maintaining a fixed value of 1 JPY = 1 yen backed by assets like bank deposits and Japanese government bonds.

Yen stablecoins could impact Japan’s bond market, potentially boosting demand for Japanese government bonds if JPYC gains widespread adoption. Okabe, a representative of JPYC, highlighted the trend of stablecoin issuers becoming major buyers of US Treasurys in the US, suggesting a similar effect in Japan.

Circle officially launched USDC in Japan on March 26 after receiving regulatory approval for its listing on SBI VC Trade. This marked the first time Japan’s Financial Services Agency cleared a foreign-issued stablecoin under its regulatory framework. Plans to expand USDC listings to other major Japanese exchanges are in progress.

Read more at Cointelegraph: Japan to Approve First Yen-Backed Stablecoin This Fall: Report