- Japan’s first Yen-denominated stablecoin, JPYC, has officially launched under the country’s Payment Services Act, issued by JPYC Inc.
- The token maintains a 1:1 peg to the yen, is fully backed by cash and government bonds, and debuts on Avalanche, Ethereum, and Polygon.
- JPYC aims for ¥10 trillion (approx. US$65.4 billion) in circulation within three years, seeking to benefit startups with lower transaction fees.
It’s official, Japan now has its own Yen stablecoin, the JPYC, crafted and issued by Japanese fintech JPYC Inc. (yes, they have the same name).
As per a press release, the fintech firm has begun issuing JPYC as the first yen-denominated stablecoin launched under Japan’s Payment Services Act. Trading opened Monday alongside JPYC EX, the firm’s in-house mint and redemption portal.
The announcement comes a few months after JPYC secured registration as a fund transfer service provider with the Financial Services Agency in August of this year.
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JPYC Debuts on Multiple Blockchains, and a ¥10T Goal
The token targets a strict 1:1 peg to the yen, and debuts on Avalanche, Ethereum, and Polygon. JPYC says outstanding tokens are fully backed by cash deposits and Japanese government bonds in line with domestic rules.
The company plans to extend chain support and pursue commercial integrations, and also set a three-year objective of ¥10 trillion in circulation, roughly US$65.4 billion (AU$104.6 billion). That would place JPYC among the largest stablecoins, though still well behind market leader USDT at about US$183.2 billion (AU$293.1 billion).
JPYC CEO Noritaka Okabe told Reuters that the stablecoin will benefit startups from lower settlement fees:
We hope to spur innovation by giving startups access to low transaction and settlement fees. Increasing global interoperability would benefit us too, so we’re open to capital tie-ups
Noritaka Okabe, CEO of JPYCThe move comes as Japan secures political backing from the US, shortly after Sanae Takaichi made history by becoming Japan’s first female prime minister in its parliament. This is also a market dominated by US dollar-pegged tokens, which account for more than 99% of global supply, according to the BIS.
Japan’s yen stablecoin now has a global use case, while its Asian peers are still navigating frameworks for issuance and control. The yen stablecoin can now plug into cross-border settlement and crypto liquidity without hitting policy walls, which would also help the country’s stagnating economy.
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