Japan launches first yen-backed stablecoin
JPYC aims for 10 trillion yen circulation and is expanding collaborations with Japanese businesses across retail and enterprise sectors.
Japanese fintech JPYC Inc. has launched Japan’s first legally recognised yen-backed stablecoin, JPYC, with trading starting on Monday. The launch features JPYC EX, the stablecoin’s issuance and redemption platform, after the company registered with Japan’s Financial Services Agency in August.
JPYC maintains a 1:1 peg to the Japanese yen and operates on Avalanche, Ethereum and Polygon blockchains. All issued tokens are backed by 100% reserves held in yen deposits and government bonds, complying with Japan’s Payment Services Act.
Users can acquire JPYC through the JPYC EX platform after completing identity verification via the My Number card. The company has set a target of 10 trillion yen ($65.4 billion) in circulation within three years and plans to expand supported blockchains and business collaborations.
Several Japanese firms are already integrating JPYC, including Densan System for retail and e-commerce payments, Asteria for enterprise software, and crypto wallet HashPort for transaction support.
The stablecoin launch comes amid strengthened Japanese regulations on digital currencies. Revised rules now require stablecoin service providers to register under the Funds Settlement Act and the Banking Act.
Major financial institutions, such as SMBC, are also exploring stablecoin issuance, signalling growing institutional interest in Japan’s digital currency sector.
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