JPYC Launches Japan’s First Yen-Pegged Stablecoin Amid Global Race
Tokyo-based fintech company JPYC has introduced the first yen-backed stablecoin in Japan, marking a major step in the country’s digital-currency evolution. The launch reflects Japan’s growing participation in the global competition for stablecoin market share.
1:1 Peg and Full Reserve Model
The JPYC token is fully collateralized by bank deposits and government bonds at a 1:1 ratio to the Japanese yen. According to the company, the exchange rate with JPY is maintained strictly at 1:1 to ensure price stability and regulatory compliance.At a press conference in Tokyo, JPYC President Noriyoshi Okabe called the launch “a historic milestone for the Japanese currency.” He revealed that seven companies have already expressed interest in integrating the token into their services.
Rising Stablecoin Momentum in Japan
The introduction of JPYC comes as the global stablecoin market booms, with USD-pegged assets like USDT and USDC dominating capitalization above $308 billion. Dollar-backed tokens are already gaining traction in Japan — Circle launched its USDC in the country on March 26.JPYC EX — A Regulated Issuance Platform
Alongside the stablecoin, JPYC unveiled JPYC EX, a dedicated platform for token issuance and redemption. The system operates under Japan’s strict anti-money-laundering and Know Your Customer laws in accordance with the Act on Prevention of Transfer of Criminal Proceeds.Users can deposit yen via bank transfer to receive JPYC to their registered wallet address and redeem tokens back into yen accounts when withdrawing funds. This integration ensures a smooth bridge between traditional finance and digital assets within Japan’s regulatory framework.
Ambitious Goals and Emerging Competition
JPYC plans to reach an issuance target of 10 trillion yen within three years and envisions building “a new social infrastructure through stablecoins.” However, competition is already intensifying.Tokyo-based financial firm Monex Group announced plans for its own yen-linked stablecoin in August, while Japan’s three largest banks — Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corp, and Mizuho Bank — are preparing a joint launch on the MUFG Progmat platform.
Regulatory Shift on the Horizon
Meanwhile, Japan’s Financial Services Agency (FSA) is considering rule changes that would allow banks to purchase and hold cryptocurrencies like Bitcoin as investment assets — a potentially transformative policy for institutional adoption in Asia’s second-largest economy.Conclusion
JPYC’s yen-backed stablecoin launch marks a turning point for Japan’s financial sector, bridging the gap between traditional currency and digital innovation. With banks and fintech giants joining the race, Japan is positioning itself as a leader in regulated stablecoin development and global digital-asset integration.Editorial Team — CoinBotLab