Japan is preparing to roll out its first yen-backed stablecoin as expectations rise for a Bank of Japan (BOJ) interest rate increase in the fourth quarter, boosting the appeal of yen-denominated assets.
Tokyo fintech JPYC plans to register as a money transfer business this fall and launch a JPY-pegged stablecoin at a 1:1 ratio with the yen. The Financial Services Agency (FSA) is expected to approve the project soon. Stablecoins facilitate trading, remittances, and corporate payments while avoiding typical crypto volatility.
Monex Group is also exploring a yen stablecoin for corporate settlements and international transfers. Chairman Oki Matsumoto emphasized the need to compete in the emerging digital currency space.
Market expectations for a BOJ rate hike, coupled with rising Japanese government bond yields—30-year JGBs above 3.2%—support yen demand. Narrowing yield spreads with U.S. bonds point to potential yen appreciation, which has already pressured BTC/JPY down 8% this month, forming a double-top bearish pattern with a downside target near 14.92 million JPY.
The timing of the stablecoin launch, alongside potential rate increases, could drive adoption of yen-based digital assets among corporate treasuries and international investors.
