Japanese fintech firm JPYC Inc. officially launched JPYC, which it calls the country’s first legally recognized yen-denominated stablecoin, with trading beginning Monday local time, it said in a press statement.
JPYC Inc. announced the start of token issuance and the launch of its dedicated platform, JPYC EX, following its registration as a fund transfer service provider with Japan’s Financial Services Agency (FSA) in August.
The stablecoin is designed to maintain a 1:1 peg to the Japanese yen and is backed by 100% reserves held in yen deposits and government bonds, aligning with regulations under Japan’s Payment Services Act. The token operates on multiple blockchains, including Ethereum, Polygon, and Avalanche.
Users can acquire JPYC via the JPYC EX platform after completing identity verification using Japan’s national ID document, the My Number card. The launch follows Japan’s June 2023 regulatory overhaul, which tightened oversight and requires stablecoin service providers to register under the Funds Settlement Act and the Banking Act.
Business Adoption and Growth Targets
JPYC Inc. has set an ambitious target to achieve 10 trillion yen ($65.4 billion) in circulation within three years, compared to the $183.2 billion circulating supply of the world’s largest stablecoin, USDT.
The company has already secured commitments from several Japanese businesses planning to integrate JPYC:
- Densan System, a fintech software firm, is developing payment systems for retail and e-commerce platforms using JPYC.
- Asteria plans to add JPYC functionality to its enterprise data integration software, which is used by over 10,000 companies.
- Crypto wallet provider HashPort also intends to support JPYC transactions.
The launch of JPYC comes as major Japanese financial institutions also explore stablecoin issuance, with SMBC, for example, having announced plans earlier this year to launch its own stablecoin in partnership with Ava Labs and Fireblocks.
