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Tokyo-based fintech JPYC has launched Japan's first yen-backed stablecoin, marking a milestone in the country's crypto market. The token, called JPYC, is issued at a 1:1 exchange rate with the Japanese yen and backed one-to-one by bank deposits and government bonds, according to the company. JPYC's debut arrives as global demand for stablecoins accelerates and dollar-pegged tokens like USDT and USDC dominate a market now worth over $308 billion.
Key announcement and industry reaction
At a Tokyo press conference, JPYC's president Noriyoshi Okabe framed the launch as a significant step for Japanese currency infrastructure. The project has reportedly attracted interest from at least seven companies exploring integration of the yen-backed stablecoin into their services. This early commercial interest underlines growing demand for fiat-pegged digital assets that can power payments, remittances, and DeFi use cases across blockchain networks.
Platform and compliance
JPYC EX issuance platform
Alongside the token, JPYC introduced JPYC EX, a dedicated issuance and redemption platform. JPYC EX enforces strict identity and transaction checks in line with Japan's Act on Prevention of Transfer of Criminal Proceeds. Users can deposit yen via bank transfer to receive JPYC in a registered wallet, and they can redeem tokens for yen, which is returned to a linked withdrawal account. This compliance-first approach is designed to build trust with institutional partners and regulators while enabling onchain liquidity.
Market context and competition
Although JPYC is the first yen-pegged stablecoin to go live, other Japanese financial groups have announced plans that could expand the market. Monex Group disclosed intentions to launch a yen stablecoin, and three of Japan's largest banks—Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corp, and Mizuho Bank—are working on a joint yen-pegged token via MUFG's Progmat issuance platform. Meanwhile, US dollar stablecoins have already entered Japan; Circle launched USDC in the market on March 26, reinforcing the international footprint of dollar-backed tokens.
Ambitions and roadmap
JPYC has set an ambitious target to reach an issuance balance of 10 trillion yen within three years. Achieving that scale would position the stablecoin as a foundational layer for payments and digital financial infrastructure in Japan. The company aims to expand merchant acceptance, integrate with crypto services, and support cross-border settlement use cases on public blockchains.
Regulatory backdrop and outlook
Regulators are watching closely. Japan's Financial Services Agency has signaled potential regulatory reviews that could allow banks to acquire and hold cryptocurrencies such as Bitcoin for investment purposes, a shift that would change the institutional landscape for crypto in Japan. As stablecoin adoption grows, clear regulatory frameworks and robust compliance measures will be essential for mainstream use and institutional participation.
For crypto investors, payments providers, and blockchain developers, the JPYC launch is an important development to monitor. It demonstrates how regional fiat stablecoins are emerging to complement dollar-denominated options and support localized onchain activity within national financial ecosystems.
Source: cointelegraph
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