Japan has officially entered the regulated stablecoin arena with the launch of JPYC, the nation's first legally recognized yen-denominated stablecoin issued by JPYC Inc. The stablecoin is pegged 1:1 to the Japanese yen and fully backed by bank deposits and government bonds, ensuring a 100% reserve ratio that aligns with Japan's strict financial compliance standards under the Payment Services Act.
Registered as a licensed fund transfer service provider and overseen by the Financial Services Agency (FSA), JPYC Inc. debuted its dedicated issuance and redemption platform, JPYC EX, on October 27, 2025. This platform enables users to mint and redeem tokens after completing Japan's mandatory My Number (JPKI) identity verification, facilitating seamless on-and-off ramping between traditional finance and digital assets.
Initial blockchain support includes Avalanche (AVAX), Ethereum (ETH), and Polygon (MATIC), expanding JPYC's interoperability across major ecosystems and allowing for instant, low-cost on-chain transfers. At a press conference, JPYC President Noriyoshi Okabe hailed the launch as a major milestone in the history of Japanese currency and revealed interest from seven companies planning to incorporate the stablecoin.
The global stablecoin market, dominated by dollar-pegged assets like USDT and USDC with a market capitalization exceeding $308 billion, now faces competition from JPYC. Long-term, JPYC aims to achieve an issuance balance of 10 trillion yen over the next three years and contribute to building new social infrastructure through stablecoins. Other contenders, such as Monex Group and major banks like Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corp., and Mizuho Bank, are also exploring yen-pegged stablecoins, with the FSA potentially reviewing regulations to allow banks to hold cryptocurrencies like Bitcoin for investment purposes.
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