- JPYC Inc. begins trading Japan’s first regulated yen-pegged stablecoin on Monday.
- Token operates on Avalanche, Ethereum, and Polygon with a 100% reserve backing system.
- The company targets 10 trillion yen circulation within three years after FSA registration.
Japanese fintech company JPYC Inc. has launched the country’s first legally recognized yen-denominated stablecoin. Trading of the JPYC token commenced on Monday and is a milestone for regulated digital currency issuance in Japan.
The company announced it began issuing the JPYC token alongside the launch of its dedicated platform, JPYC EX, which handles issuance and redemption. JPYC Inc. registered as a fund transfer service provider with Japan’s Financial Services Agency in August and meets regulatory requirements to operate.
Stablecoin maintains 1:1 peg with reserves
The JPYC stablecoin maintains a 1:1 peg to the Japanese yen and functions across multiple blockchains including Avalanche, Ethereum, and Polygon. The company backs all issued tokens with 100% reserves held in yen deposits and government bonds, complying with Japan’s Payment Services Act regulations.
Related: Japan Approves Its First-Ever Yen-Pegged Stablecoin, Backed by Government Bonds
Users can acquire JPYC through the JPYC EX platform after completing identity verification using the My Number card, Japan’s official identity document for citizens and residents. This verification process aligns with regulatory standards for financial service providers in the country.
JPYC Inc. has set a circulation target of 10 trillion yen, equivalent to $65.4 billion, within three years. The company plans to expand supported blockchains and establish collaborations with businesses across various sectors.
Japanese businesses plan integration
Several Japanese companies have announced plans to incorporate JPYC into their operations. Fintech software firm Densan System is developing payment systems for retail stores and e-commerce platforms that will accept the stablecoin. Asteria intends to add JPYC functionality to its enterprise data integration software, which serves over 10,000 companies. Crypto wallet provider HashPort also plans to support JPYC transactions.
The launch arrives as Japan strengthens oversight of its developing stablecoin sector. In June 2023, the country revised stablecoin regulations, requiring service providers to register under the Funds Settlement Act and the Banking Act to issue or manage stablecoin circulation.
Related: India and the U.S. Lead Global Crypto Adoption in 2025 as Stablecoin Volume Hit $4 Trillion
Major Japanese financial institutions have started exploring stablecoin issuance opportunities. SMBC announced plans in April to launch its own stablecoin in partnership with Ava Labs and Fireblocks, according to reports from Nikkei.
The regulatory framework positions Japan as one of the first developed nations to establish clear guidelines for yen-backed stablecoins. The structure needs full reserve backing and registration with financial authorities. This creates a regulated environment for digital currency operations.
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