Japan's Financial Services Agency is expected to approve the country's first yen-denominated stablecoin, JPYC, this month.

The Financial Services Agency will register fintech company JPYC Inc. as a money transfer business operator, with sales anticipated to commence within weeks following the registration.

The digital currency will be backed by liquid assets including government bonds to maintain price stability at a 1:1 ratio with the Japanese yen, ensuring that 1 JPYC equals 1 yen.