Japan Enters Stablecoin Race With Launch of Yen-Pegged JPYC

Tokyo fintech JPYC Inc. debuts Japan’s first yen-backed stablecoin to drive faster, low-cost digital settlements.

JPYC President Noriyoshi Okabe calls the launch a “major milestone” in Japan’s currency evolution

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Japan has entered the global stablecoin race with the launch of its first yen-backed digital currency, JPYC. It marks a significant step in the country’s financial innovation. The stablecoin, which is created by Tokyo-based fintech company JPYC Inc., has a fixed 1:1 exchange rate with the yen and is fully backed one-to-one by Japanese yen held in government bonds and bank deposits. The launch positions Japan within the growing global stablecoin market, which has so far been dominated by dollar-pegged assets such as USDT and USDC. 

Japan’s First Yen-Backed Stablecoin Aims to Boost Financial Innovation

JPYC President Noriyoshi Okabe described the launch at a press conference in Tokyo as “a major milestone in the history of Japanese country.” He further added that seven businesses have already expressed interest in incorporating the stablecoin into their financial and payment systems. Alongside the token, the firm has also launched a dedicated platform, JPYC EX, for issuing and redeeming JPYC under Japan’s Act on Prevention of Transfer of Criminal Proceeds, ensuring stringent identity and transaction verification measures. 

Users can acquire JPYC by depositing yen through bank transfers and receiving the tokens in registered digital wallets. In order to give users a clear and controlled process, the platform also permits redemptions back into yen. JPYC aims to achieve an issuance balance of JPY 10 trillion (roughly Rs. 5,75,000 crore) within three years.

The company hopes its stablecoin will enable startups and institutions to benefit from faster, low-cost settlements, fostering innovation in Japan’s digital economy. 

This decision aligns with growing interest in blockchain-based assets from Japanese regulators and financial institutions. Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corp, and Mizuho Bank are preparing to jointly issue a yen-pegged stablecoin through MUFG’s Progmat platform. Regulations that would allow banks to hold cryptocurrencies such as Bitcoin for investment purposes are expected to be reviewed by the Financial Services Agency in the interim.

Experts such as former Bank of Japan executive and Rikkyo University academic Tomoyuki Shimoda told Reuters that yen-backed stablecoins may take time to gain traction compared with their dollar-based counterparts. Shimoda further added that although broad adoption might take “two to three years,” programs like JPYC are a crucial first step in updating Japan’s financial system for the digital era. 

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