Japan has opened a new chapter in digital finance with the launch of its first legally recognized yen-backed stablecoin.
Japanese fintech company JPYC Inc. has officially launched JPYC, the country’s first regulator-approved yen-pegged stablecoin, alongside its dedicated issuance and redemption platform, JPYC EX. Registered with Japan’s Financial Services Agency (FSA) in August, JPYC Inc. became the first issuer to operate under the country’s Payment Services Act framework.
The JPYC token is pegged 1:1 to the Japanese yen and operates on Avalanche, Ethereum, and Polygon networks. The company stated that every JPYC in circulation is fully backed by yen deposits and government bonds. Users can acquire JPYC through the JPYC EX platform after completing identity verification via Japan’s My Number card.
JPYC Inc. aims to reach 10 trillion yen ($65.4 billion) in circulation within three years and plans to expand its blockchain integrations and business partnerships. Several Japanese firms, including Densan System, Asteria, and HashPort, have already begun integrating JPYC-based payment and enterprise solutions.
The launch aligns with Japan’s tightening regulatory framework for stablecoins, following the 2023 law that brought issuers under the Funds Settlement Act and Banking Act. This shift has encouraged major financial institutions like SMBC to accelerate their own stablecoin development initiatives.
