Japan Enters the Stablecoin Race: JPYC Launches Nation’s First Yen-Backed Token

Japan has officially joined the stablecoin race. The fintech firm JPYC Inc. launched the country’s first legally recognized yen-denominated stablecoin on Monday, dubbed JPYC, marking a major step toward digital currency adoption under Japan’s recently revised crypto regulations.

A new chapter for Japan’s digital finance

JPYC Inc. confirmed the rollout in a press release, stating that issuance began alongside the launch of its dedicated platform, JPYC EX, where users can mint and redeem the stablecoin.

The company, now a registered fund transfer service provider with Japan’s Financial Services Agency (FSA), emphasized that JPYC maintains a 1:1 peg with the Japanese yen, backed fully by reserves in yen deposits and Japanese government bonds, a structure designed to meet compliance standards under the Payment Services Act.

To acquire JPYC, users must complete identity verification via Japan’s My Number card, a national ID used for financial and administrative services.

Once verified, users can transact directly through the JPYC EX platform. The stablecoin currently operates across Ethereum, Avalanche, and Polygon, reflecting JPYC’s push to make its token compatible with leading blockchain ecosystems.

The firm’s long-term ambitions includes aims to reach 10 trillion yen (approximately $65 billion) in circulation within three years. For perspective, that would make it one of the largest fiat-backed stablecoins globally, though still trailing giants like Tether (USDT), which holds over $180 billion in supply.

Enterprise adoption and future expansion plans

JPYC’s introduction is already drawing attention from Japanese businesses looking to integrate blockchain-based payments.

A fintech software company Densan System is reportedly developing payment infrastructure for retail and e-commerce platforms using JPYC, while Asteria Corp. plans to incorporate JPYC transactions into its enterprise data integration tools, which are already used by over 10,000 companies.

The company also noted that it will expand its blockchain support and explore partnerships across industries to accelerate adoption.

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