Japan's digital asset landscape is witnessing significant institutional momentum as two major developments signal growing confidence in yen-pegged stablecoins. In early 2025, JPYC Inc., the issuer of the Japanese yen-pegged stablecoin JPYC, successfully closed a landmark Series B funding round, securing 1.78 billion yen (approximately $11.9 million). The round was led by prominent Japanese software developer Asteria, marking JPYC's first major venture capital raise at this stage.
JPYC's funding will be strategically allocated to expand its financial and Web3 ecosystems, focusing on technological development, ecosystem grants for projects building on supported blockchains, compliance and operational scaling, and strategic partnerships. The stablecoin currently operates on multiple blockchain networks including Avalanche, Ethereum, and Polygon, employing a multi-chain approach to enhance accessibility and utility. JPYC operates under Japan's revised Payment Services Act enacted in 2023, which establishes a clear legal regime for stablecoins, requiring them to be backed by legal tender and issued by licensed financial institutions or registered money transfer agents.
Simultaneously, Japanese financial giant SBI Holdings and Web3 innovator Startale Labs have officially unveiled plans for the JPYSC, a fully regulated Japanese yen stablecoin targeting a second-quarter 2025 launch. This strategic initiative represents a convergence of traditional banking authority and cutting-edge blockchain technology, with SBI Shinsei Trust Bank managing issuance, SBI VC Trade handling distribution, and Startale leading technological development.
The JPYSC project leverages the expertise of its partners: SBI Holdings brings regulatory compliance and financial market access through its established cryptocurrency exchange SBI VC Trade, while Startale Labs (born from collaboration between Sony Network Communications and the Astar Network Foundation) provides Web3 technological expertise. The stablecoin is designed from the ground up to be fully compliant with Japan's Payment Services Act amendments, offering institutional-grade security and trust.
Market analysts view these developments as validation of the asset-backed stablecoin model within regulated jurisdictions. The Asteria-led investment in JPYC demonstrates that established technology firms see tangible value in building infrastructure for a digital yen economy, while SBI's entry could catalyze the entire Asian stablecoin market. Both initiatives aim to accelerate integration with existing payment systems, DeFi protocols, and potentially gaming or metaverse platforms seeking yen stability.
These developments position Japan as a competitive player in the global digital asset economy, with regulated yen stablecoins serving as essential bridges between traditional finance and decentralized applications. The focus now shifts to execution, with both projects aiming to transform capital and partnerships into real-world utility and user adoption.
