Japan’s Financial Services Agency (FSA) is expected to approve the first yen-denominated stablecoin as soon as this fall, as reported by the Nihon Keizai Shimbun on Sunday.

Fintech firm JPYC is set to register as a money transfer business with the FSA, clearing the way for its yen stablecoin’s authorization. This stablecoin aims to maintain a 1:1 value with the yen and is secured by liquid assets such as bank deposits and government bonds.

Key Points:

• The Financial Services Agency will approve the first yen-denominated stablecoin in the upcoming months.
• The fintech company JPYC will register to become a money transfer service, facilitating its token’s approval.
• The year has witnessed significant regulatory advancements for stablecoins, particularly those pegged to traditional currencies like the dollar and euro.

Stablecoins are digital currencies tied to traditional financial assets, facilitating smoother transactions and regulatory compliance. Major regions such as the U.S. and Hong Kong have also made strides in regulating digital assets this year.

Neither the FSA nor JPYC has provided comments in response to requests for information.