Tokyo-based fintech JPYC secures approval for Yen-backed stablecoins

Japan’s three largest banks (Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho) are joining forces to launch stablecoins backed by both the yen and the U. S. dollar, according to ￰0￱ digital currencies will be pegged 1:1 to fiat, aimed at helping corporate clients handle payments and settlements faster, using a shared framework between the ￰1￱ yen-pegged stablecoin will be issued ￰2￱ dollar version might come later, depending on how the early rollout ￰3￱ banks plan to build an infrastructure that allows their business clients to move funds between each other smoothly and under uniform ￰4￱ ￰5￱ cleaner transactions, fewer delays, and more digitization across the banking system in ￰6￱ gets approval and sets big targets While the big banks coordinate their tech and standards, one startup’s already ahead in getting regulatory greenlights.

JPYC, a fintech company based in Tokyo, became the first firm in Japan officially approved to issue yen-backed ￰7￱ Noritaka Okabe said during a press briefing that JPYC’s coin will be “fully convertible into yen” and backed by local savings and Japanese government ￰8￱ plans to issue 1 trillion yen worth of the stablecoin, about $6.81 billion, within three ￰9￱ coin will be launched this fall and is expected to attract large investors like hedge funds and family ￰10￱ use cases are everything from carry trades to international remittances to corporate ￰11￱ coin will use Mitsubishi UFJ Trust Bank’s Progmat Coin platform and follow a trust-based model for security and compliance.

Monex, Startale, and regulators move in Elsewhere in Tokyo, Monex Group is watching the space ￰12￱ company hasn’t committed to launching a coin yet, but chairman Osa Matsumoto told the media that stablecoins could make yen-based international remittances and corporate transactions more ￰13￱ said, “Issuing stablecoins requires significant infrastructure and capital, but if we don’t address them, we will be left behind.” Monex hasn’t pulled the trigger, but they’ve made it clear they don’t want to miss the ￰14￱ Tezuka, country manager at Web3 firm Startale Group, said the stablecoin gap between the US and Japan shows broader differences in how each country sees digital ￰15￱ referenced the US GENIUS Act, which has triggered both “relief and curiosity” among American firms, while noting that Japan was the first to create a legal framework for stablecoins, but still didn’t have a yen-backed blockchain asset until now.

That’s finally ￰16￱ years of watching from the sidelines, Japan is moving from caution to full-blown ￰17￱ not everything is moving ￰18￱ Financial Services Agency (FSA) and its enforcement arm, the Securities and Exchange Surveillance Commission (SESC), are working to close a huge gap: insider trading in digital ￰19￱ current laws like the Financial Instruments and Exchange Act (FIEA), only traditional financial instruments like stocks and bonds are ￰20￱ assets? Not ￰21￱ the old system, insider trading rules only apply to events like mergers, share swaps, or changes in major ￰22￱ listed company is supposed to release this “inside information” to the public, and insiders can’t trade on it until it’s ￰23￱ the crypto world doesn’t play by the same rules.

Pseudo-anonymous structures, decentralized ownership, and lack of clear issuers make it nearly impossible to tell who’s “inside.” That’s why the SESC wants to fine offenders based on how much they made through illegal crypto ￰24￱ to Nikkei, under new regulations being finalized by the FSA, the watchdog will be given the legal right to investigate, recommend fines, and even make criminal referrals in crypto-related insider trading ￰25￱ now, Japan depends on crypto exchanges and the Japan Virtual and Crypto Assets Exchange Association to ￰26￱ a premium crypto trading community free for 30 days - normally $100/mo.