Japan’s first legally recognized yen-backed stablecoin, JPYC, has officially launched, marking a major step in the country’s digital finance evolution.
Key Takeaways
- JPYC Inc. launched the first yen-pegged stablecoin fully backed by yen deposits and Japanese government bonds.
- The stablecoin is issued through a platform called JPYC EX and aims for 10 trillion yen in circulation within three years.
- Seven companies are already planning to integrate JPYC into their services.
- Japan’s megabanks and financial groups are also preparing to enter the stablecoin market.
What Happened?
Tokyo-based fintech firm JPYC Inc. began issuing Japan’s first legally compliant yen-backed stablecoin, called JPYC. Fully backed by yen deposits and government bonds, the JPYC token is now available through the company’s dedicated issuance platform, JPYC EX.
🚨JAPANESE YEN STABLECOIN IS HERE!
— Coin Bureau (@coinbureau) October 27, 2025
🇯🇵Startup JPYC will launch the world’s first yen-pegged stablecoin, fully backed by Japanese savings and government bonds. pic.twitter.com/hd8tdVBAbR
Japan Embraces Digital Currency With JPYC
The JPYC stablecoin is designed to maintain a 1:1 peg with the Japanese yen, offering seamless conversion through its JPYC EX platform. Users must complete identity verification using their My Number ID before they can acquire or redeem the token. The launch follows JPYC Inc.’s registration as a funds transfer service provider with Japan’s Financial Services Agency (FSA).
According to JPYC President Noriyoshi Okabe, the stablecoin has already caught the attention of seven companies looking to integrate it into payment systems and business operations. Among the early partners:
- Densan System is developing payment solutions for retailers and e-commerce platforms using JPYC.
- Asteria plans to embed JPYC into its enterprise data integration software.
- HashPort, a crypto wallet provider, will support JPYC transactions.
JPYC currently runs on multiple blockchains including Ethereum, Avalanche, and Polygon, and the company plans to expand to more networks in the future.
Ambitious Growth Plans
JPYC has set a bold target of 10 trillion yen (approximately $66 billion) in circulation over the next three years. To promote early adoption, the company will waive transaction fees and instead rely on returns from holding Japanese government bonds.
“We hope to spur innovation by giving startups access to low transaction and settlement fees,” said CEO Noritaka Okabe. He also expressed openness to international partnerships to increase global interoperability.
Broader Industry Impact and Government Oversight
Japan’s move comes as interest in stablecoins continues to surge globally. US dollar-backed stablecoins, like Tether’s USDT and Circle’s USDC, dominate the market, accounting for more than 99 percent of the global supply, according to the Bank for International Settlements.
Japan’s regulators revised stablecoin rules in 2023, requiring strict compliance with the Funds Settlement Act and Banking Act. This regulatory clarity has opened the door for banks and fintech firms to experiment with digital yen alternatives.
Several major players are joining the race:
- SMBC has partnered with Ava Labs and Fireblocks to develop its own stablecoin.
- Monex Group is also preparing to launch a yen-pegged stablecoin.
- Japan’s three megabanks – Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corporation, and Mizuho Bank plan to issue a joint stablecoin via MUFG’s Progmat platform.
Academic and Central Bank Perspectives
While the launch is a significant milestone, experts warn that yen stablecoins may take years to gain wide usage. Former Bank of Japan executive Tomoyuki Shimoda noted that without the global reach of the US dollar, yen-pegged stablecoins face an uphill battle for mass adoption.
Meanwhile, Bank of Japan Deputy Governor Ryozo Himino warned that stablecoins could disrupt traditional banking by shifting funds outside regulated financial systems. “Stablecoins might emerge as a key player in the global payment system,” he said, urging regulators to adapt swiftly.
CoinLaw’s Takeaway
I think this is a turning point for Japan’s digital currency scene. While other countries have raced ahead with dollar-backed stablecoins, Japan has taken a cautious but meaningful step by launching JPYC. In my experience watching crypto adoption globally, regulation and trust are everything. By tying JPYC to government bonds and requiring identity verification, JPYC is setting a high bar for legitimacy. If the megabanks follow through on their stablecoin plans, we might see a very different payments landscape in Japan within just a few years.
