JPYC Inc. launched Japan's first fully regulated yen-backed stablecoin, legally authorized by the Financial Services Agency, backed 1:1 by bank deposits and government bonds, marking a new chapter in Japan’s digital finance.
Japan's first officially licensed yen-backed stablecoin, JPYC, was launched on October 27 by JPYC Inc., marking a historic breakthrough in digital currency regulation.
JPYC is fully backed by bank deposits and Japanese government bonds, maintaining a strict 1:1 peg to the yen under a new regulatory framework by Japan's Financial Services Agency (FSA).
This is the first stablecoin issued in Japan with full legal authorization, following the revised Payment Services Act.
A New Era for Digital Yen: Fully Regulated and Trustworthy
JPYC is classified not as a cryptocurrency but as an electronic payment instrument linked directly to the fiat yen.
CEO Noritaka Okabe emphasized, "JPYC is a currency-based asset with a value tied directly to the Japanese yen and is not a cryptocurrency."
The token operates on Ethereum, Avalanche, and Polygon blockchains, offering secure, fully compliant digital currency for payments and blockchain financial services.
Japan’s comprehensive stablecoin framework introduced in 2024 set the stage for JPYC's launch.
The company has been operating a prepaid digital payment service since 2021 and secured a money transmission business license, granting it the authority to issue stablecoins legally.
Market forecasts anticipate the yen stablecoin market could reach between $260 billion to $550 billion in the next five years, fuelled by interest from Japan's leading banks like Mitsubishi UFJ and Mizuho, all developing their own digital yen projects.
Backing Stability and Strengthening Financial Infrastructure
JPYC's complete backing with yen deposits and government bonds addresses concerns over volatility common in many cryptocurrencies.
This stablecoin offers businesses a reliable bridge between traditional fiat currency and digital assets, enabling faster settlements, reduced exchange risks, and smooth cross-border transactions.
All JPYC reserves are held transparently in licensed financial institutions, reinforcing trust and collateral safety.
Beyond providing a new payment model, JPYC is expected to boost demand for Japanese government bonds due to its asset backing.
Experts see this creating a positive impact on Japan's bond market, integrating the traditional financial ecosystem with emerging fintech innovations.
The platform's stringent identity verification system aligns with regulatory compliance standards and enhances security.
Plans for Expansion into Web3 and Cross-Border Use
JPYC Inc. aims to integrate its stablecoin into NFT gaming, Web3 protocols, and international remittance services to expand its ecosystem.
The vision is to increase convenience for retail and institutional users domestically and internationally, setting a precedent for other regulated digital currencies.
Japan’s stablecoin development aligns closely with global trends seen in Hong Kong, South Korea, the EU, and the U.S., positioning the nation as a regional leader in compliant digital currency innovation.
The launch of JPYC and its issuance platform JPYC EX represents a milestone—Japan's first regulated digital yen stablecoin, backed by real-world assets and under stringent supervision.
It sets a new standard in how fiat-pegged stablecoins coexist with conventional finance and blockchain technology.
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Japan Launches First Licensed Yen Stablecoin
JPYC becomes Japan’s first licensed yen-backed stablecoin, fully backed by government bonds and deposits, marking a regulated digital yen era.