JPYC Rolls Out First Yen-Backed Stablecoin — A Game Changer for Japan?

Japan’s JPYC Inc. has launched the world’s first fully regulated yen-pegged stablecoin. | Credit: Getty Images.

Key Takeaways

Japanese firm JYPC launched the first regulated yen-pegged stablecoin. The peg is fully guaranteed by yen bank deposits and Japanese Government Bonds (JGBs). The launch of the yen stablecoin could dramatically impact the Asian FX market.

Tokyo-based fintech JPYC Inc. has launched JPYC, Japan’s—and the world’s—first fully regulated yen-pegged stablecoin, marking a milestone moment in Asia’s digital finance landscape.

The stablecoin operates as an electronic payment instrument under Japan’s revised Payment Services Act, maintaining a strict 1:1 peg to the Japanese yen (JPY).

Its reserves are fully backed by bank deposits and Japanese Government Bonds (JGBs), offering a level of transparency and regulatory compliance rarely seen in the stablecoin space.

Japan’s First Yen Stablecoin Could Be a Game Changer

JPYC’s debut follows Japan’s 2023 stablecoin law amendments, which paved the way for licensed institutions to issue fiat-backed digital currencies.

The company’s goal is clear: to bridge traditional finance with blockchain-based payments—and, in doing so, reduce Asia’s reliance on U.S. dollar-backed stablecoins such as USDT and USDC.

Through its issuance platform, JPYC EX, users can mint or redeem the token with an initial daily limit of 1 million yen per user.

Supported blockchains include Ethereum (ETH), Polygon (POL), and Avalanche (AVAX), enabling low-cost and near-instant transactions.

JPYC has set an ambitious goal of reaching 10 trillion yen (~$65 billion) in circulation within three years, beginning with domestic Web3 firms and institutions before scaling internationally.

Analysts note that the yen’s status as a global safe-haven currency and cornerstone of the Asian FX ecosystem could make JPYC’s launch a turning point for both crypto and traditional markets.

Potential Market Impact

The Japanese yen underpins much of Asia’s foreign exchange market, with USD/JPY ranking among the world’s most traded currency pairs—seeing $300–$400 billion in daily activity.

By introducing a regulated, blockchain-based yen instrument, JPYC could help digitize and decentralize FX flows in a region where 80–90% of trade settlements are still dollar-denominated.

DeFi protocols can now create JPYC–USDC/USDT liquidity pools, opening the door for on-chain USD/JPY trading and moving a portion of the $7 trillion global FX activity onto blockchain rails.

This shift could cut settlement times from two days to minutes, reduce cross-border transaction costs by up to 80%, and make yen-based settlements more attractive for trade-heavy supply chains in East Asia.

Story Continues

In the longer term, experts suggest JPYC could boost yen-denominated liquidity in decentralized markets by 20–30%, challenging the U.S. dollar’s dominance and potentially reducing FX volatility across Asia.

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