The stablecoin market is experiencing unprecedented adoption, to the point of reshuffling the cards in the still hesitant central bank digital currency (CBDC) sector. The first issuer of its kind will soon be authorized in Japan.
The first stablecoin backed by the Japanese yen?
The year 2025 may go down in the annals of the cryptocurrency sector as the year of the historic rise of stablecoins outside their ecosystem. Just look at how Circle’s challenger USDC recently made a very popular IPO with its CRCL stock.
Adoption is now firmly established in the financial and banking sectors, largely based on stable cryptocurrencies backed by the US dollar, to the point where some US politicians believe that any national central bank digital currency (CBDC) project is now obsolete.
This situation is prompting some more resistant countries to consider taking the plunge, such as China, which is determined not to leave the field open to the US in this area. Could this be an additional motivation for Japan to also look into the issue?
Indeed, a recent report from the Japanese economic and financial media outlet Nikkei reports a major breakthrough in this area, under the auspices of the Japan Financial Services Agency. On the agenda: the first stablecoin backed by the national currency.
Japanese Finance Minister Katsunobu Kato warned in early August of the current weakening of the Japanese yen (JPY) on the currency market, which is at its lowest level since March. The situation is being closely monitored by domestic investors, who are bracing for government intervention to support the currency.
The Japanese government will take all necessary measures to mitigate the impact of [Donald Trump’s] tariffs on Japanese industries and employment.
Katsunobu Kato
A context of monetary fragility could be behind an unexpected relaxation on the part of the Japanese Financial Services Agency. Indeed, it appears that fintech JPYC is about to obtain the status of the first official issuer of a stablecoin backed by the yen.
According to information from the Nikkei media, the launch is expected to take place this fall. The aim is clearly to make room for the Japanese national currency in a market “dominated by dollar-backed stablecoins, which exceed $250 billion (approximately 37 trillion yen).” At the same time, “Japan also aims to promote its use, particularly as a means of international transfer.”
