JPYC Stablecoin Launch: Japan’s First Yen-Backed Token Sets Big Target

Tokyo-based JPYC launched the JPYC yen-backed stablecoin. The company says JPYC keeps a 1:1 exchange rate with the Japanese yen. It backs the yen-backed stablecoin with bank deposits and Japanese government bonds.

At a press conference, JPYC President Noriyoshi Okabe called the release “a major milestone in the history of Japanese currency.” He said seven companies want to add the JPYC yen-backed stablecoin to their services. The company highlighted the yen-pegged design and reserve mix.

The Japan stablecoin launch arrives as global stablecoins grow past $308 billion in market value. USDT and USDC dominate worldwide usage. USDC also entered Japan on March 26, adding dollar rails before this yen-backed stablecoin option.

JPYC Launch Announcement. Source: Noriyoshi Okabe on X

JPYC EX stablecoin platform — issuance, redemption, and compliance

Alongside the token, JPYC launched JPYC EX, a stablecoin platform for issuing and redeeming JPYC. Users can deposit Japanese yen by bank transfer. They then receive JPYC to a registered wallet address.

Redemptions return yen to a linked withdrawal account. The JPYC EX stablecoin platform runs strict checks. It follows the Act on Prevention of Transfer of Criminal Proceeds for identity and transaction verification.

These controls set a clear workflow for the JPYC yen-backed stablecoin. Users move funds from bank accounts to on-chain addresses. The steps mirror routine online banking. The result is a Japan stablecoin that fits into existing payment habits.

Japan stablecoin landscape — rivals, banks, and Progmat

The Japan stablecoin market will see more issuers. In August, Monex Group said it plans a yen-pegged stablecoin. That signals more competition for the JPYC yen-backed stablecoin in domestic use cases.

Three large banks — Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corp, and Mizuho Bank — also discussed a yen-pegged stablecoin. They intend to use MUFG’s Progmat platform for issuance. That plan would connect a yen-backed stablecoin to familiar banking rails.

Dollar tokens remain part of the picture. USDT and USDC handle global settlement and exchange flows. With USDC live in Japan since March 26, firms now see both dollar-pegged and yen-backed options. Choice will depend on accounting, pricing, and counterparties.

FSA rule review — bank holdings, Bitcoin, and oversight

Japan’s Financial Services Agency (FSA) may review rules that limit bank exposure to crypto. The review could allow banks to acquire and hold cryptocurrencies, including Bitcoin, for investment purposes. Any change would define risk limits and reporting.

The FSA already enforces strict KYC and monitoring for stablecoins. The JPYC EX stablecoin platform follows those standards. Identity checks and transaction screening remain central.

If banks gain new permissions, they could expand custody or settlement roles. That could affect how a yen-backed stablecoin integrates with bank services. Final guidance will set pace and scope for participation.

JPYC issuance goal — 10 trillion yen and adoption channels

JPYC set a target to reach an issuance balance of 10 trillion yen within three years. The company links the goal to building social infrastructure through stablecoins. The plan focuses on usage, not only listings.

Early interest from seven companies suggests initial channels for the JPYC yen-backed stablecoin. Integrations may include payments and platform-level settlement. The JPYC EX platform supports onboarding and flows between yen and JPYC.

Scale will test how a yen-backed stablecoin competes with USDT and USDC. The global stablecoin market sits above $308 billion. In that context, the Japan stablecoin segment now features JPYC, with rivals preparing yen-pegged products on Progmat and beyond.