Japan’s JPC Launches JPYC, First Yen-Pegged Stablecoin for Digital Payments

• JPYC represents a breakthrough in Japan’s digital finance, registered as a Fund Transfer Service Provider with the Financial Services Agency.

• The stablecoin supports seamless integration for businesses via a free software development kit on GitHub.

• With cashless payments reaching 42.8% in 2024, JPYC aligns with Japan’s shift toward digital transactions, targeting 10 trillion yen issuance in three years.

Discover JPYC stablecoin: Japan’s yen-pegged crypto innovation for instant transfers on major blockchains. Explore its launch, backing, and impact on digital payments today.

What is the JPYC Stablecoin?

JPYC stablecoin is Japan’s inaugural yen-denominated stablecoin, introduced by Tokyo-based fintech firm JPC Inc. following its registration as a Fund Transfer Service Provider with Japan’s Financial Services Agency in August. It upholds a strict 1:1 exchange rate with the Japanese yen, facilitating rapid issuance, redemption, and peer-to-peer transfers across blockchain networks including Avalanche, Ethereum, and Polygon. This design ensures users benefit from blockchain efficiency while maintaining fiat stability.

How Does the JPYC Stablecoin Ensure Stability and Security?

The JPYC stablecoin achieves stability through comprehensive backing by Japanese yen deposits and government bonds, with reserves surpassing 100% of the circulating supply to mitigate risks and build user confidence. JPC Inc. emphasizes transparent reserve management, drawing from established practices in the stablecoin sector as outlined by regulators like the Bank for International Settlements, which notes that over 99% of global stablecoins are currently U.S. dollar-backed. Security is further enhanced via the JPYC EX platform, where users link cryptocurrency wallets and undergo identity verification using Japan’s My Number card system—a national ID framework ensuring compliance with anti-money laundering standards. According to JPC Inc. executives, this multi-layered approach “positions JPYC as a reliable bridge between traditional finance and blockchain innovation.” Short, verifiable transactions on compatible blockchains reduce latency, making it suitable for everyday use. Experts from the Bank of Japan have highlighted stablecoins’ potential to “partially replace bank deposits,” underscoring regulatory endorsement. Data from government reports shows Japan’s cashless payment adoption surging to 42.8% in 2024 from just 13.2% in 2010, signaling a cultural shift that JPYC aims to accelerate.

Frequently Asked Questions

What Are the Key Features of Japan’s First Yen Stablecoin?

JPYC stablecoin features instant issuance and redemption at a 1:1 yen ratio, operates on Avalanche, Ethereum, and Polygon for low-cost transfers, and includes full backing by yen assets exceeding the outstanding balance. It supports business integrations through an open SDK, promoting adoption in payments and accounting.

How Can Users Access and Use the JPYC Stablecoin?

To use JPYC stablecoin, individuals and businesses can access it via the JPYC EX platform by connecting a compatible wallet and verifying identity with the My Number card. Once set up, users issue or redeem tokens seamlessly for transfers, payments in retail or e-commerce, or integration into SaaS tools, all while enjoying the stability of yen backing.

Key Takeaways

• Regulatory Milestone: JPYC stablecoin’s launch follows JPC Inc.’s FSA registration, marking Japan’s entry into fiat-backed digital assets compliant with local laws.
• Broad Applicability: Supported by integrations from firms like Densan System and ASTERIA Corporation, it enables uses in creator payments, fund transfers, and digital infrastructure.
• Future Growth: Aiming for 10 trillion yen in issuance over three years, JPYC could transform Japan’s financial landscape amid rising cashless trends.

Conclusion

The introduction of JPYC stablecoin and its yen-backed framework signals Japan’s commitment to innovative digital finance, complementing the nation’s evolving regulatory environment for blockchain technologies. By leveraging secure, over-collateralized reserves and multi-chain compatibility, JPYC addresses key needs in a market shifting toward non-cash solutions. As adoption grows through platforms like Nudge Card and comilio, it promises to enhance efficiency across sectors, paving the way for a more integrated digital economy in Asia.

JPYC maintains a 1:1 peg with the yen, enabling instant issuance, redemption, and transfers via Avalanche, Ethereum, and Polygon.

JPC Inc., a Tokyo-based fintech company, has officially launched Japan’s first yen-denominated stablecoin, JPYC today, after registering as a Fund Transfer Service Provider with Japan’s Financial Services Agency in August.

The company said in a press release that stablecoin maintains a 1:1 exchange rate with the Japanese yen, allowing users to issue, redeem, and transfer funds instantly through blockchain networks such as Avalanche, Ethereum, and Polygon. 

The assets backing JPYC, including yen deposits and government bonds, will exceed 100% of the outstanding balance to ensure stability.

JPC will also roll out JPYC EX, a dedicated platform where users can issue or redeem the stablecoin by linking their wallets and completing identity verification through Japan’s My Number card system.

The company said the move aims to support Japan’s growing shift toward digital payments. According to government data, cashless payments rose to 42.8% in 2024, up from 13.2% in 2010, reflecting a rapid move away from cash in a country once known for its preference for physical currency.

The open design of JPC will enable the developers to incorporate JPYC into their own systems by a free software development kit (SDK) on GitHub. Businesses such as Densan System, ASTERIA Corporation, HashPort, and double jump.tokyo have already announced plans to integrate the stablecoin for payments, fund transfers, and accounting tools.

The company expects the stablecoin to be used in a wide range of sectors, including retail, e-commerce, SaaS, and creator payments, through platforms like Nudge Card and comilio.

JPC said it aims to reach an issuance balance of 10 trillion yen within three years as part of its effort to build a new digital financial infrastructure in Japan.

Why it matters

The launch of JPYC marks a major milestone in Japan’s financial innovation. It positions Japan as a serious contender in Asia’s digital currency race, joining China and South Korea, which are also exploring or allowing fiat-backed stablecoins. 

Currently, U.S. dollar-backed tokens account for more than 99% of the global stablecoin market, according to the Bank for International Settlements.

The Bank of Japan recently noted that stablecoins “could partially replace bank deposits,” signaling growing regulatory focus on their role in the future of digital finance.

Also Read: Japan Plans to Allow Banks to Trade Bitcoin and Other Crypto

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