On August 18, Japan’s Financial Services Agency registered fintech venture JPYC Inc. (CEO: Noritaka Okabe) as a “Funds Transfer Service Provider” under the revised Payment Services Act, officially approving the issuance of a yen-denominated stablecoin. JPYC satisfied demanding regulatory standards, including full transparency of backing assets and the guarantee of immediate redemption, making it the first licensed issuer in Japan of a stablecoin tied 1:1 to the yen.

JPYC designed its business model on the premise that the token issuer does not provide custody services (i.e., does not hold customer assets directly). JPYC unified customer identity checks under Japan’s “My Number” public ID service—a government-backed system—achieving a framework that is both simplified and dependable. Purchasers transfer yen via bank payment, and in return, receive one JPYC token per one yen in their digital wallet.

In June this year, Circle Internet Group, issuer of the US dollar–pegged stablecoin USDC, went public on the New York Stock Exchange. Its share price soared from an initial $31 to as high as $263, drawing significant attention. Currently, the international digital finance market is dominated by dollar-denominated stablecoins such as USDC and USDT, with transaction volumes approaching 40 trillion yen (approximately USD 270 billion). Meanwhile, China is also preparing to issue a stablecoin pegged to the Chinese yuan (renminbi, RMB), aiming to strengthen its role in international settlement.

Because stablecoins are directly linked to legal tender, they can potentially replace conventional commercial transactions and daily payments. Unlike credit card or QR code payment systems, there is no need to build costly merchant networks, which means higher profitability for retailers. High fees for international remittances can also be reduced. The overall impact on economic activity could be substantial.

Amid these developments, global competition for dominance in digital economic ecosystems is intensifying. Brazil’s instant payment system PIX, for example, is seeking to expand its reach beyond South America to Europe and India. Against this backdrop, our firm is preparing a special report provisionally titled “The Future of Financial Markets Transformed by Stablecoins: An Analysis of Their Impact on Society and Economic Activity.” We look forward to sharing our insights with you.

Takashi Mizukoshi, the President
This Week’s Focus, August 24–28, 2025