JPYC Says Regulator Dialogue Was Central to Japan Stablecoin Rollout, Sees Potential Tie-Up With Won Token

JPYC, the first issuer of a yen-denominated stablecoin in Japan, said a strong operating track record and sustained communication with regulators were critical to bringing stablecoins into the regulated financial system.

Shota Saito, JPYC’s head of business development and marketing, made the remarks on Aug. 21 at a policy seminar at the National Assembly Members’ Office Building in Seoul’s Yeouido district titled “The Great Shift in Financial Order and the Formula for Successfully Issuing K-Stablecoins.” He outlined Japan’s regulatory path for stablecoins and JPYC’s business experience.

JPYC issued its yen stablecoin in October 2025 after receiving approval from Japanese financial authorities. Saito cited more than four years of operating experience, anti-money laundering and counter-terrorist financing systems, and close communication with regulators as key factors behind that approval.

Before launching its formal stablecoin, JPYC operated prepaid products and built issuance and operating infrastructure, including in a multichain environment. It then focused on establishing AML and CFT systems and internal structures comparable to those of traditional financial institutions.

Ongoing consultations with Japan’s Financial Services Agency played an important role in securing entry into the regulated market, Saito said. JPYC held three rounds of formal talks with the FSA during the approval process and submitted more than 200 documents. Since the token’s launch, the company has continued regular discussions with the agency, including on the composition of reserve assets. He described active communication with regulators as the foundation for improving trust and safety in stablecoins.

Saito also pointed to limits in Japan’s current framework. Issuance and redemption caps, as well as the scope of transferability, vary depending on the issuance structure, and those rules could restrict broader real-world adoption. “If restrictions are placed on issuance, they ultimately have a major impact on actual use cases, so this is an important issue,” he said.

The licensing regime for stablecoin custody and distribution could also act as a barrier to entry for operators, he said. Because the issuer and the company developing practical use cases are often separate in the stablecoin market, Saito said policy design needs to cover not only issuance but also distribution and use.

As for the strengths of yen stablecoins, he cited their usefulness 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 presented an upbeat view of global market growth, citing projections that global stablecoin issuance could reach as much as $4 trillion by 2030. Based on money supply, he said the yen stablecoin market could grow to about 50 trillion won, or about $36.2 billion. JPYC has also 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. JPYC can be exchanged for Olive Young gift certificates through Unifi, a stablecoin super app from Kaia and Line Next, he said.

He also pointed to a steady increase in the number of Japanese tourists visiting South Korea. If yen-based digital assets can be linked to actual consumer spending in Korea, stablecoins could evolve beyond a simple transaction tool into a cross-border means of payment.

Saito said the scope of use could widen further if a won stablecoin is issued in the future. That could allow yen and won stablecoins to be exchanged directly and then linked to payments and consumer spending in South Korea.

“The number of Japanese travelers visiting Korea is rising every year, and demand for trips to Korea is also increasing,” 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 regulating and using stablecoins in practice could serve as a reference as South Korea designs its own won stablecoin framework.