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- JPYC is Japan’s first legally recognized yen stablecoin.
- Fully backed by yen deposits and government bonds.
- Adoption by businesses signals growing digital payment integration.
Japan’s fintech landscape reached a landmark milestone as JPYC Inc. officially launched the nation’s first legally recognized yen-denominated stablecoin on Monday. Named JPYC, the token is now available through the company’s new issuance and redemption platform, JPYC EX, signaling a significant step in Japan’s adoption of regulated digital finance.
Structure and Regulatory Compliance
JPYC is pegged 1:1 to the Japanese yen and operates across multiple blockchains, including Ethereum, Avalanche, and Polygon. The company ensures full backing of issued tokens with yen deposits and Japanese government bonds, adhering strictly to Japan’s Payment Services Act.
JPYC Inc announced the official launch of its yen-denominated stablecoin, JPYC, along with the release of its dedicated issuance and redemption platform, JPYC EX. The stablecoin is pegged 1:1 to the Japanese yen and fully backed by bank deposits and government bonds. Initial…
— Wu Blockchain (@WuBlockchain) October 27, 2025
To maintain transparency and compliance, users must verify their identity via Japan’s My Number card before purchasing JPYC. This verification ensures that transactions meet domestic regulatory standards and protects both consumers and the broader financial ecosystem.
Growing Adoption Among Businesses
JPYC has set ambitious targets, aiming for a circulation of 10 trillion yen ($65.4 billion) within three years. Several Japanese companies are already integrating the stablecoin into their systems.
Notably, fintech firm Densan System plans to incorporate Japanese Yen stablecoin into retail and e-commerce payments, while Asteria will embed JPYC functionality into enterprise software used by over 10,000 companies. Crypto wallet provider HashPort has also confirmed support for JPYC transactions, reflecting strong domestic interest in blockchain-based payment solutions.
Policy Support and Market Impact
Japan’s regulatory framework for stablecoins has evolved rapidly. In June 2023, reforms under the Funds Settlement Act and Banking Act created a structured environment for digital yen issuance. Additionally, Japan’s reclassification of cryptocurrencies as financial instruments under the Financial Instruments and Exchange Act (FIEA) underscores the government’s commitment to secure, modernized digital payments.
Also Read: Metaplanet Acquires Bitcoin.jp to Build Japan’s Leading Bitcoin Hub Amid Bold Expansion
Cashless payment adoption in Japan has risen sharply, reaching 42.8% in 2024, up from 13.2% in 2010. With JPYC at the forefront, Japan positions itself to compete with regional stablecoin initiatives while maintaining a regulated, consumer-protective approach.
The JPYC launch represents more than just a new digital token—it reflects Japan’s strategic move to modernize payment systems through blockchain innovation within a secure legal framework. As businesses and consumers adopt JPYC, it may redefine how digital yen transactions integrate into everyday commerce.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
