Japanese startup JPYC has announced plans to issue the country’s first yen-pegged stablecoin later this year, following the receipt of a regulatory license this week. The new digital currency, named “JPYC,” will be fully convertible to the Japanese yen and backed by domestic savings and Japanese government bonds (JGBs).
JPYC Stablecoin Details
JPYC CEO Noritaka Okabe said at a press conference that the stablecoin is expected to attract institutional investors, hedge funds, and family offices in Japan at first. Over time, the company aims to expand its reach globally and position JPYC as a form of digital yen for cross-border use.
Key features of JPYC include:
- Yen convertibility – Fully backed 1:1 by the Japanese yen.
- Reserves – Backed by domestic savings and JGBs.
- No transaction fees – Revenue will instead come from interest earned on government bond holdings.
- Launch timeline – Expected rollout around autumn 2025.
Stablecoin Momentum Worldwide
Blockchain-based stablecoins, which are typically pegged to fiat currencies, are gaining global traction due to their faster and cheaper transaction capabilities.
- United States: In July, President Donald Trump signed into law federal rules to regulate stablecoins, paving the way for wider use in everyday payments. Financial giants like Bank of America and Fiserv are also preparing to launch their dollar-backed tokens.
- China: In contrast, where cryptocurrency trading is banned, regulators have ordered local brokers to halt research publications endorsing stablecoins to limit investor interest.
Outlook for Japan’s Digital Yen
The launch of JPYC marks a significant milestone in Japan’s push toward digital currency adoption. By tying the token to JGBs, the company aims to provide both stability and transparency, potentially making JPYC a trusted instrument for domestic and international use.
If successful, JPYC could accelerate Japan’s role in the global digital payments ecosystem and provide a regulatory-compliant alternative to unbacked cryptocurrencies.
