Japan Launches its First-Ever Yen-backed Stablecoin, JPYC

Japan has officially joined the global stablecoin movement with the launch of its first yen-backed digital currency, JPYC. The new stablecoin, introduced by Tokyo-based fintech firm JPYC, is fully backed by bank deposits and government bonds and maintains a 1:1 exchange rate with the Japanese yen.

At a press conference in Tokyo, JPYC President Noriyoshi Okabe hailed the launch as a “major milestone in the history of Japanese currency.” The company revealed that seven firms have already expressed interest in integrating the stablecoin into their systems, signaling strong early adoption within the country’s financial sector.

JPYC’s introduction comes as the worldwide stablecoin market continues to surge, now exceeding $308 billion in capitalization and largely dominated by U.S. dollar-pegged assets like Tether (USDT) and Circle’s USDC. Circle itself entered the Japanese market earlier this year with the rollout of USDC on March 26.

Alongside the stablecoin, JPYC launched JPYC EX, a dedicated issuance and redemption platform. The platform operates under Japan’s stringent anti-money laundering laws, ensuring full identity and transaction verification. Users can deposit yen via bank transfer to receive JPYC in their registered wallets and redeem it back into fiat currency at any time.

Looking ahead, JPYC aims to achieve an issuance balance of 10 trillion yen within three years and build a new financial infrastructure powered by stablecoins.

However, JPYC may soon face competition. Financial giant Monex Group and Japan’s three largest banks—Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corp, and Mizuho Bank—are also developing yen-pegged stablecoins through MUFG’s Progmat platform. Meanwhile, Japan’s Financial Services Agency is reportedly reviewing rules that could allow banks to hold cryptocurrencies such as Bitcoin.