Yen-Backed Stablecoin Japan: JPYC Launches Country’s First
Background: Japan’s Entry into the Stablecoin Market
Tokyo-based fintech firm JPYC has formally launched Japan’s first yen-backed stablecoin, signaling a significant development in the country’s digital asset landscape. Announced at a press conference in Tokyo, the new stablecoin, JPYC, went live on Monday. The yen-backed stablecoin is fully secured one-to-one with bank deposits and government bonds, ensuring a direct 1:1 exchange rate with the Japanese yen, JPYC stated in its release on Friday.
JPYC President Noriyoshi Okabe described the launch as a “major milestone in the history of Japanese currency,” highlighting the move as a critical step for the nation’s digital finance ecosystem. According to Cointelegraph, seven companies have already shown interest in adopting the new stablecoin for their operations.
This development comes as the global stablecoin market reaches a capitalization of over $308 billion, largely dominated by dollar-pegged stablecoins such as USDT and USDC. Circle, for example, introduced USDC to Japan in March 2024, demonstrating the growing appetite for regulated digital currencies in the country.
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JPYC EX Platform and Regulatory Measures
JPYC has also unveiled JPYC EX, a dedicated platform to support the issuance and redemption of its yen-backed stablecoin. The platform is designed to comply with Japan’s Act on Prevention of Transfer of Criminal Proceeds, requiring strict identity and transaction verification. Users can deposit yen via bank transfer, receive JPYC in their registered wallet, and redeem the tokens back into yen at any time.
The company’s long-term vision includes reaching a stablecoin issuance balance of 10 trillion yen within three years and enabling new forms of digital social infrastructure.
Market Reaction and Competition
JPYC’s launch positions the company at the forefront of yen-backed stablecoin innovation in Japan, but competition is building. Monex Group, another Tokyo-based financial services company, has announced plans to introduce its own yen-pegged stablecoin. Additionally, Japan’s three largest banks—Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corp, and Mizuho Bank—intend to jointly issue a yen-backed stablecoin on the Progmat platform developed by MUFG.
This flurry of activity coincides with signals from Japan’s Financial Services Agency that it may soon review regulations, potentially allowing banks to acquire and hold cryptocurrencies, including Bitcoin, as investment assets.
What’s Next for Yen-Backed Stablecoins in Japan?
The emergence of the JPYC yen-backed stablecoin marks a strategic expansion of digital finance options in Japan, as the country aligns with global trends in stablecoin adoption and regulation. The involvement of major financial institutions and ongoing regulatory reviews may accelerate stablecoin integration into Japan’s broader financial system, with further announcements expected from industry competitors.
Sources
Reporting via Cointelegraph.
