JPYC debuts Japan’s first fully yen-backed stablecoin

On Monday, Japanese startup JPYC officially launched a yen-denominated stablecoin, JPYC. The Japanese firm also announced the debut of its issuance and redemption platform, JPYC EX, which will support its newly debuted yen-pegged stablecoin.

JPYC revealed that they’ll be conducting maintenance on the JPYC EX service page in preparation for its public release. The firm also directed its users to access the new platform only after the maintenance is complete.

JPYC debuts its issuance platform

【⚙️メンテナンスのお知らせ】

本日12:30〜13:00の間、
JPYC EXサービスページ（https://t.co/0Uo9Y5bIXu） の公開準備に伴うメンテナンスを実施いたします。
メンテナンス終了後に、ぜひアクセスください。
新しいJPYC EXサービスページをお楽しみに！#JPYC #JPYCEX #メンテナンス情報

— JPYC株式会社 (@jpyc_official) October 27, 2025

JPYC’s CEO, Noritaka Okabe, stated that the stablecoin will be fully convertible to the yen and backed by domestic savings and Japanese government bonds (JGBs). He also revealed that the company expects demand for the stablecoin to come from institutional investors, hedge funds, and family offices in Japan.

Okabe confirmed that the firm plans to expand JPYC’s reach to people worldwide as digital yen. JPYC also confirmed that it won’t charge transaction fees for the stablecoin. 

The Japanese startup noted that the more stablecoins it issues, the more JGBs it will hold, and it plans to generate revenue from the interest on those holdings. The stablecoins will be available on several blockchains, including Avalanche, Ethereum, and Polygon.

The initiative to launch a stablecoin in Japan comes as the country’s financial infrastructure is dominated by traditional payment means such as cash and credit cards. Japan’s Financial Services Agency approved the stablecoin, suggesting a shift in the country’s historically cash-heavy economy.

According to government data, Japan’s adoption of digital payments has surged over the years, from 13.2% in 2010 to over 42.8% in 2024. The adoption of stablecoins is set to accelerate the country’s growth in crypto adoption.

Cryptopolitan previously reported that Japanese banks, Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho, are planning to establish a joint yen-stablecoin system on October 31. The country’s Big Three financial institutions revealed that the stablecoin will be used for corporate settlements via MUFG’s Progmat platform. The banks believe that the initiative could connect more than 600,000 NetStars payment terminals by mid-November, thereby expanding the real-world use of the service.

The launch of a yen-denominated stablecoin makes JPYC the first significant non-USD stablecoin supported by a major economy. Just as U.S. stablecoins have boosted Treasury holdings in the U.S., Japan’s stablecoin could also change how liquidity moves across Asia. Japan’s initiative could also diversify regional markets and strengthen demand for JGBs.

Japan sees stablecoins replacing traditional deposits

According to the Bank for International Settlements, the U.S. dominates the $286 billion stablecoin market, with 99% being dollar-based digital assets. Tomoyuki Shimoda, a former BOJ executive, argued that it would take time for yen-backed digital assets to gain adoption compared to U.S.-backed stablecoins.

“There’s a lot of uncertainty on whether yen stablecoins will become widespread in Japan. If megabanks join the market, the pace could accelerate. But it could still take at least two to three years.”

~ Tomoyuki Shimoda, Senior Policymaker at the Bank of Japan.

Bank of Japan Deputy Governor Ryozo Himino recently argued that stablecoins might emerge as a key player in the global payment system. He also believes that stablecoins will partially replace traditional deposits. The bank’s governor also expects yen-pegged tokens to gain traction over the next two to three years. He argued that the digital assets could potentially spill over into decentralized finance, tokenized assets, and cross-border settlement networks.

Japan’s advancement into the crypto sector follows U.S. President Donald Trump’s support for the industry, which has sparked a revival of interest in blockchain in the mainstream financial system. The country first established rules in 2023 to allow the issuance of fiat-backed currencies. The U.S. also established stablecoin legislation, the GENIUS Act, which sets rules for U.S. dollar-backed digital assets.

China is also considering the inclusion of a yuan-backed stablecoin in its financial sector, a sign of growing adoption of the fiat-denominated currency, which offers faster and cheaper transactions. South Korea has also hinted at allowing firms to establish won-based stablecoins.

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