Japan is inching towards the approval of its first yen-backed stablecoin, with regulators likely to approve it as soon as October.

Nikkei reports that the token, named JPYC, will be issued by Tokyo fintech company JPYC and will be backed by the Japanese yen with reserves like bank deposits and government debt.

Stablecoin Target Remittances And Corporate Payments

The forthcoming launch follows a 2023 revision of Japan’s Financial Services Agency’s legal requirements classifying stablecoins as “currency-denominated assets.”

With this regulation, only licensed money transfer companies, trust companies, and banks may issue them. JPYC is in the process of registering as a money transfer company within the month, which will enable selling tokens shortly afterward.

The company’s goal

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