Japan’s first yen-pegged stablecoin has been launched by Tokyo-based fintech firm JPYC, with the company beginning issuance through its newly developed platform.
Dubbed JPYC, the stablecoin pegged 1:1 with the Japanese yen went live on Monday and is fully backed by bank deposits and government bonds, according to the company’s announcement.
What is the JPYC stablecoin?
JPYC will operate under Japan’s Payment Services Act and has been launched across multiple blockchains, including Ethereum, Avalanche, and Polygon.
According to the official press release, JPYC can only be issued and redeemed through its dedicated platform, JPYC EX, where Users who verify their identity using Japan’s My Number identification card can deposit yen via bank transfer.
Once verified, users receive the equivalent value in JPYC to their registered wallet addresses, with redemptions available directly back into yen.
JPYC EX has been designed to be compliant with Japan’s strict anti-money laundering protocols governed by the Act on Prevention of Transfer of Criminal Proceeds.
At a press conference in Tokyo, JPYC President Noriyoshi Okabe noted that several domestic companies have already shown interest in adopting the token for their services.
“We hope to spur innovation by giving startups access to low transaction and settlement fees,” he said, adding that JPYC is also open to “capital tie-ups” that would expand its interoperability worldwide.
Notably, seven Japanese firms plan to integrate JPYC into their systems, including fintech software developer Densan System, which is building payment tools for retail and e-commerce, and enterprise software company Asteria, which intends to embed JPYC functionality in its data integration products, Okabe said.
In the meantime, Crypto wallet provider HashPort has also confirmed support for JPYC transactions.
Looking ahead, JPYC has set an ambitious target of achieving an issuance balance of 10 trillion yen within three years.
The company intends to launch JPYC across more blockchain networks in the future and pursue overseas usage.
Over the long run, the firm plans to create an ecosystem that allows JPYC to circulate across a much bigger range of payment and settlement networks.
Japan to counter dollar-pegged stablecoins
The launch marks a pivotal moment for Japan’s domestic stablecoin market, which has largely been overshadowed by dollar-based counterparts such as USDT and USDC.
With Circle launching USDC in Japan earlier this year, and major financial players like Monex Group and Mitsubishi UFJ Financial Group exploring their own yen-pegged tokens, the country’s stablecoin landscape is beginning to diversify.
Three Japanese megabanks, MUFG, SMBC, and Mizuho, are already preparing to issue a joint yen-backed stablecoin on MUFG’s Progmat platform.
At the same time, Japanese regulators are reassessing their stance on crypto integration within traditional finance.
The Financial Services Agency has reportedly begun reviewing proposals that could allow banks to buy and sell cryptocurrencies, including Bitcoin, under a regulated framework.
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