Japan’s Financial Services Agency is set to approve the country’s first yen-denominated stablecoin, clearing fintech firm JPYC Inc. to begin issuing the token as early as this autumn. The coin, branded JPYC, will maintain a one-for-one peg to the Japanese currency and be fully backed by bank deposits and short-term government bonds held in trust. JPYC Inc. aims to place as much as ¥1 trillion (about US$6.8 billion) of the digital currency into circulation over three years. The company expects the asset to be used for domestic settlements, cross-border remittances and decentralised-finance transactions, arguing that the reserve structure could widen demand for Japanese sovereign debt. The FSA’s green light is among the first under 2024 regulations that require stablecoin issuers to register as money-transfer businesses and segregate reserves. Separately, Japanese equities continued their advance on Monday. The Nikkei 225 climbed as much as 0.9% to an intraday record 43,757.84, topping the previous high of 43,451 set on 13 August, while the broader Topix also logged a record. A weaker yen near ¥147 per dollar and gains in export-heavy automakers and Fast Retailing buoyed sentiment after the Dow Jones Industrial Average closed higher last week. Analysts said expectations of lower U.S. interest rates and solid domestic earnings are keeping buying interest intact, though profit-taking trimmed recent gains in bank and semiconductor shares. Together, the FSA’s pending approval of a regulated digital yen proxy and the fresh highs in Japanese equities underscore growing confidence in the country’s financial markets.