JPYC Says Regulator Dialogue Is Key to Japan Stablecoin Adoption, Sees Potential Link With Won Coin

JPYC, Japan’s first issuer of a yen-denominated stablecoin, said a strong operating track record and sustained communication with regulators are critical for stablecoins to gain a stable foothold in the formal financial system.

Shota Saito, JPYC’s head of business development and marketing, made the remarks at an Aug. 21 policy seminar at the National Assembly Members’ Office Building in Seoul’s Yeouido district. The event focused on the shift in the financial order and the formula for successfully issuing a Korean won stablecoin.

JPYC issued its yen stablecoin in October 2025 after receiving approval from Japan’s financial authorities. Saito cited more than four years of operating experience, anti-money laundering and countering the financing of terrorism systems, and close communication with regulators as the main factors behind the approval.

Before launching its formal stablecoin, JPYC operated a prepaid product and built issuance and operational infrastructure across a multichain environment. It then concentrated on putting in place AML and CFT systems and internal organizations comparable to those of existing financial institutions.

Sustained consultations with Japan’s Financial Services Agency played an important role in JPYC’s entry into the regulated sector, Saito said. The company held three rounds of formal talks with the FSA during the approval process and submitted more than 200 documents. Since the launch, it has continued to communicate regularly with the agency on issues including the composition of reserve assets. Saito said such active engagement with regulators underpins trust and safety in stablecoins.

He also pointed to limits in Japan’s current framework. Issuance and redemption caps, as well as the scope of transfers, differ depending on the issuance structure, and those restrictions can curb the expansion of real-world use cases.

“If issuance is constrained, it will ultimately have a major effect on actual use cases, so this is an important area,” Saito said.

The licensing regime required for the custody and distribution of stablecoins can also act as a barrier to entry for operators, he said. Because the issuer and the company developing actual use cases are often separate in the stablecoin market, institutional design needs to cover not only issuance but also distribution and use.

As strengths of yen stablecoins, Saito cited their usability within Japan’s economic sphere and their ability to enable instant payment and settlement. He also said relatively low yen interest rates could make them competitive as a funding currency.

Saito also expressed optimism about global market growth. He cited projections that global stablecoin issuance could reach as much as $4 trillion by 2030. Based on money supply, that would imply a yen stablecoin market of about 50 trillion won, or about $36.2 billion. JPYC has set a goal of securing a 60% to 70% share of issuance in the yen stablecoin market by 2030, assuming continued market expansion.

Saito cited Olive Young gift certificates as an example of how JPYC is already being used in South Korea. Users can exchange JPYC for Olive Young gift certificates through Unify, a stablecoin super app operated by Kaia and LINE NEXT, he said.

He noted that the number of Japanese tourists visiting South Korea continues to rise. If yen-based digital assets can be linked to real-world spending in South Korea, stablecoins could evolve beyond a trading tool into a cross-border payment method.

The scope of use could widen further if a won stablecoin is issued in the future, he said. That could create a structure in which yen and won stablecoins are exchanged directly and then linked to payments and consumption in South Korea.

“The number of Japanese people traveling to Korea is increasing every year, and demand to visit Korea is also rising,” Saito said. “If a won stablecoin is issued, it could develop in more diverse ways, including exchanges with yen stablecoins.” He added that Japan’s experience in institutionalizing stablecoins and putting them to practical use could serve as a reference for designing South Korea’s won stablecoin framework.