Japan Launches JPYC, The First Yen-Pegged Stablecoin

Japan has released its much-awaited yen-pegged stablecoin called the JPYC. The first yen-backed stablecoin is developed by the Tokyo-based firm HPYC Inc. According to the release data, the stablecoin is fully backed by government bonds and bank deposits while maintaining a 1:1 exchange rate with the Japanese yen.

The stablecoin went live on Monday and signaled a complete shift in Japan’s new approach to digital currencies. Speaking at a press conference in Tokyo, JPYC President Noriyoshi Okabe described the launch as a “major milestone in the history of Japanese currency.” According to Business Insider Japan, seven companies have already expressed interest in adopting the new currency.

The debut of JPYC comes amid a rapidly expanding global stablecoin market, which has surpassed $308 billion in capitalization. While the market has been dominated by dollar-backed assets such as Tether’s USDT and Circle’s USDC, Japan is now positioning itself to establish a foothold with its own currency-backed alternative. Notably, Circle introduced its USDC stablecoin in Japan earlier this year, on March 26.

Alongside the digital coin, JPYC has also launched JPYC EX, a specialized platform designed for issuing and redeeming tokens. The platform adheres to Japan’s Act on Prevention of Transfer of Criminal Proceeds, enforcing strict identity and transaction verification. Users can deposit yen through bank transfers to receive JPYC in digital wallets and convert it back into yen when needed.

Looking ahead, JPYC aims to reach an issuance balance of 10 trillion yen within the next three years. The company envisions its stablecoin as part of a broader effort to “create a new social infrastructure” powered by blockchain-based assets.

Important Reads: Japan Set to Launch First Regulated Yen-Pegged Stablecoin This Fall

However, competition is already increasing. Financial giant Monex Group announced plans in August to launch its own yen-pegged stablecoin, while Japan’s largest banks, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corp, and Mizuho Bank, are developing a joint yen-backed coin through MUFG’s Progmat platform.

Meanwhile, Japan’s Financial Services Agency is reportedly reviewing regulations to allow banks to hold cryptocurrencies such as Bitcoin, a move that could further integrate digital assets into Japan’s financial ecosystem.

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