Nikolas Sargeant
Tokyo-based fintech company JPYC has launched Japan's first yen-backed stablecoin, marking a significant development in the country's digital currency landscape. The stablecoin, also called JPYC, went live on Monday and maintains a one-to-one exchange rate with the Japanese yen while being backed by bank deposits and government bonds. This comes as Japan’s Financial Services Agency announced two months ago that the stablecoin would be approved by this Fall.
The launch includes JPYC EX, a dedicated platform for issuing and redeeming the token that operates under strict identity verification and anti-money laundering regulations. Users can deposit yen via bank transfer to receive JPYC tokens to their registered wallet addresses. Company President Noriyoshi Okabe described the launch as a major milestone in Japanese currency history, with seven companies already expressing interest in adoption.
JPYC enters a global stablecoin market that has surpassed $308 billion in market capitalization, dominated primarily by dollar-pegged assets like USDT and USDC. China has also recently launched a Yuan-backed stablecoin in order to compete in this market. The company has set ambitious goals, aiming to achieve an issuance balance of 10 trillion yen over the next three years as it seeks to create new social infrastructure through stablecoin technology.
Competition in Japan's stablecoin market is expected to intensify soon. Monex Group announced plans to launch its own yen-pegged stablecoin, while three of Japan's largest banks are collaborating to jointly issue a yen stablecoin on Mitsubishi UFJ Financial Group's Progmat platform. Meanwhile, Japan's Financial Services Agency is reportedly considering regulatory changes that would allow banks to acquire and hold cryptocurrencies for investment purposes.
