Tokyo-based fintech firm JPYC has unveiled JPYC, a new stablecoin pegged to the Japanese yen at a 1:1 ratio. Its stability is backed by bank deposits and government bonds, ensuring that each digital JPYC is fully collateralized by real yen held in the traditional financial system.

Company president Noriyoshi Okabe called the launch a milestone for Japan’s economy, noting that seven companies have already shown interest in integrating the token into their services. JPYC is expected to appear soon not only in fintech apps but also in e-commerce and digital wallets.

Response to the global digital currency boom

Stablecoins are among the fastest-growing segments of the crypto market, with a total value exceeding $308 billion, led by dollar-backed tokens like USDT and USDC. Japan had long stayed on the sidelines due to strict regulations, but these are now being relaxed. This year, Circle’s USDC became officially available in the country.

JPYC enters the scene as interest in digital money grows not just among investors but also among corporations and institutions seeking faster, more efficient transaction methods.

JPYC EX platform as a gateway

The launch includes the JPYC EX platform, allowing users to easily purchase or redeem JPYC. Funds sent via bank transfer are converted into the same amount of JPYC in a crypto wallet, and tokens can be swapped back just as easily.

The platform complies with Japan’s anti-money laundering laws, requiring identity verification and transaction monitoring. JPYC aims to build trust among everyday users, businesses, and banks. The company plans to reach ¥10 trillion in circulation within three years, positioning JPYC as one of Japan’s largest digital finance projects.

Competition on the horizon

JPYC is unlikely to remain alone. Financial group Monex Group is planning its own yen-backed stablecoin, while major banks including Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho Bank are developing a joint platform called Progmat. Japan may also soon allow banks to hold cryptocurrencies, including bitcoin, as investment assets — a major step toward integrating digital currencies into the national economy.

What it means for everyday users

If JPYC and similar stablecoins succeed, they could soon become a regular payment method — for online shopping, peer-to-peer transfers, and cross-border transactions. For Japan, it marks a crucial step toward a digital economy where trust, ease of use, and merchant adoption will determine success.

Sources:

https://corporate.jpyc.co.jp/news/posts/jpyc-ex-launch

https://www.businessinsider.jp/article/2510jpyc-company-begins-issuance-of-jpyc-stablecoin/

https://defillama.com/stablecoins

https://cointelegraph.com/news/circle-launch-stablecoin-usdc-japan-march-26

https://cointelegraph.com/news/yen-backed-stablecoin-launches-in-japan