Haciyev Reşit 
Japan has made a significant move in the digital finance landscape. Fintech firm JPYC Inc. officially launched the country’s first legally recognized yen-backed stablecoin, JPYC, today. The stablecoin is pegged 1:1 to the Japanese yen and will be fully backed by bank deposits and government bonds.
JPYC Ushers in the Stablecoin Era in Japan
In its official announcement, JPYC Inc. confirmed the launch of Japan’s first legally compliant yen-backed stablecoin, JPYC. Trading began on Monday morning (local time), marking Japan’s official entry into the stablecoin era within its regulated digital asset ecosystem.
Alongside the stablecoin, the company introduced a dedicated issuance and redemption platform called JPYC EX. JPYC Inc. had previously been registered with Japan’s Financial Services Agency (FSA) in August as an authorized fund transfer service provider, granting it the legal framework required to issue and manage digital currencies in compliance with Japanese financial laws.
JPYC Launches with Multi-Chain Support: Avalanche, Ethereum, and Polygon
The JPYC stablecoin has been designed to operate across Avalanche, Ethereum, and Polygon networks. This multi-chain compatibility enables broader accessibility and seamless integration for both institutional and retail users, ensuring interoperability across leading blockchain ecosystems.
Ambitious Goal: ¥10 Trillion in Circulation Within Three Years
JPYC Inc. has set an ambitious target for its stablecoin — aiming to have ¥10 trillion (approximately $65.4 billion) worth of JPYC in circulation within the next three years. For comparison, the world’s largest stablecoin, Tether (USDT), currently has a circulating supply of around $183 billion. If JPYC reaches its target, it could become one of the largest stablecoin projects in Asia, rivaling global leaders in market presence and adoption.
Corporate Integrations: Backed by Densan System, Asteria, and HashPort
The launch of JPYC has already spurred strong corporate partnerships across Japan’s tech and finance sectors:
- Densan System will develop JPYC-compatible payment systems for retail stores and e-commerce platforms.
- Asteria plans to integrate JPYC functionality into its data integration software, used by over 10,000 enterprise clients.
- HashPort will add JPYC support to its crypto wallet infrastructure, helping to boost the token’s transaction volume.
These collaborations are expected to pave the way for widespread adoption of JPYC in financial, commercial, and technological ecosystems across Japan.
Strengthening Stablecoin Regulations in Japan
The launch of JPYC comes as Japan tightens its stablecoin regulatory framework. A June 2023 amendment to the Payment Services Act and Banking Act requires all stablecoin issuers to be registered financial institutions. Under these rules, only fully reserve-backed stablecoins are allowed in the Japanese market — making JPYC the first legally recognized yen-backed stablecoin.
Japan’s major financial institutions are also preparing to enter the space. For example, Sumitomo Mitsui Banking Corporation (SMBC) announced in April that it was developing its own yen-backed stablecoin in partnership with Ava Labs and Fireblocks.
Assessment
The launch of JPYC marks a historic milestone in Japan’s digital finance evolution. With its legal compliance, multi-chain infrastructure, and institutional integrations, JPYC positions Japan as a potential leader in Asia’s regulated stablecoin market.
Experts believe this move could not only accelerate Japan’s digital financial transformation but also reshape the global stablecoin landscape, setting a new benchmark for transparency, interoperability, and trust in the sector.
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