Japan’s Financial Services Agency is poised to approve the country’s first yen-denominated stablecoin as early as this autumn, according to reports from Nikkei and other local outlets. The move would give regulatory clearance to JPYC Inc., a Tokyo-based fintech, after the firm registers as a money-transfer business later this month. The planned token, branded JPYC, will maintain a one-for-one peg with the Japanese yen and be fully backed by bank deposits and Japanese government bonds. Final approval would mark the first time the FSA permits a domestically issued stablecoin linked to Japan’s currency, expanding a market that is dominated globally by dollar-based tokens. JPYC aims to issue roughly ¥1 trillion ($7 billion) of the digital currency over three years, targeting uses such as international remittances and decentralised finance applications. Analysts say the structure could add a new source of demand for Japanese government debt while helping Tokyo keep pace with the more than $250 billion global stablecoin sector.