Japan's Financial Services Agency (FSA) will approve the first yen-denominated stablecoin as early as this fall, according to a Nihon Keizai Shimbun report on Sunday.

Fintech company JPYC will register as a money transfer business with the FSA, paving the way for the approval of the first yen stablecoin. JPYC's stablecoin is built to maintain a 1:1 peg with the currency and is backed by liquid assets such as bank deposits and government bonds.

Stablecoins are digital assets that track the value of a traditional financial asset such as a fiat currency. The largest stablecoins such as Tether's USDT and Circle's USDC are pegged to the dollar, but there are a growing number of tokens that track other currencies such as the euro.

Stablecoins have been at the forefront of regulatory advanceme

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