Quick Breakdown
- JPYC becomes Japan’s first fully yen-backed stablecoin, supported by bank deposits and government bonds.
- JPYC EX platform enables secure, regulated issuance and redemption under Japan’s AML laws.
- The move positions Japan for increased stablecoin competition and potential regulatory expansion in crypto investments.
JPYC debuts Japan’s first yen-pegged Stablecoin
Tokyo-based fintech company JPYC Inc. has officially rolled out Japan’s first yen-backed stablecoin, marking a pivotal step in the nation’s transition toward regulated digital finance. The stablecoin, named JPYC, went live on Monday and is fully backed by bank deposits and government bonds, maintaining a 1:1 ratio with the Japanese yen, according to the company announcement on Friday.
ついに、日本円建初のステーブルコインJPYCが！
JPYCの発行償還が開始されました。https://t.co/X3gLEVRFs7【開発者向け】
コントラクトアドレスは契約前準備書面をご覧ください。https://t.co/hHpY0HIyCW— 岡部典孝 JPYC代表取締役 (@noritaka_okabe) October 27, 2025
During a press briefing in Tokyo, JPYC President Noriyoshi Okabe described the development as a “major milestone in the history of Japanese currency.” He noted that seven companies have already expressed interest in adopting the stablecoin for their financial operations, according to Business Insider Japan.
JPYC EX: a regulated platform for issuance and redemption
JPYC’s launch comes as the global stablecoin market has exploded to have a market capitalization of over $308 billion. US dollar stablecoins have already been established in Japan, with Circle having launched USDC in the country on March 26.
Alongside the stablecoin, JPYC introduced JPYC EX, a dedicated issuance and redemption platform built under Japan’s Act on Prevention of Transfer of Criminal Proceeds. The system requires strict identity verification (KYC) and transaction monitoring, ensuring full compliance with Japanese financial laws.
Users can transfer yen to their JPYC EX accounts to receive the digital equivalent in their registered wallets and can also convert their JPYC back to yen through designated withdrawal accounts. The company envisions achieving an issuance balance of 10 trillion yen within three years, positioning stablecoins as a foundation for new financial infrastructure in Japan.
Japan’s stablecoin market heats up
JPYC’s launch is expected to ignite competition in Japan’s stablecoin sector. Monex Group, another Tokyo-based financial firm, announced plans in August to release its own yen-pegged stablecoin. Meanwhile, Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corp, and Mizuho Bank are exploring a joint stablecoin issuance through MUFG’s Progmat platform.
Adding to the momentum, Japan’s Financial Services Agency (FSA) is reportedly considering regulatory adjustments that could enable banks to hold cryptocurrencies such as Bitcoin (BTC) as part of their investment portfolios.
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