Japan plans to approve its first yen-denominated %Stablecoin this autumn.
Media reports say that Japanese regulator the Financial Services Agency (FSA) will greenlight the stablecoin to launch in coming months.
Financial technology 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 Japanese currency and is backed by liquid assets such as bank deposits and government bonds.
Stablecoins are digital assets that are pegged to the value of another asset, typically the U.S. dollar or price of gold.
The largest stablecoins such as Tether’s (CRYPTO: $USDT) and Circle’s (NYSE: $CRCL) USDC are pegged to the American dollar, but there are a growing number of digital tokens that track other currencies such as the euro and soon the yen.
Stablecoins are growing in popularity as they are seen as helping to execute traditional banking and financial transactions.
Other jurisdictions, such as the U.S. and Hong Kong, have introduced regulations in recent months to help facilitate the licensing and oversight of stablecoins.
Stablecoin issuer Circle went public earlier this year and its stock has since gained 39% to trade at $149.26 U.S. per share.
