Japan Enters the Global Stablecoin Race
Japan has officially entered the global stablecoin race. Tokyo-based fintech innovator JPYC Inc. has launched the nation’s first yen-backed stablecoin, designed to modernize digital payments and set new standards for financial transparency.
The JPYC stablecoin, announced on Friday and launched Monday, is backed one-to-one by bank deposits and Japanese government bonds, maintaining a fixed 1:1 exchange rate with the yen.
At a press conference in Tokyo, JPYC President Noriyoshi Okabe called the development a “historic milestone for Japanese currency,” adding that seven major companies have already expressed interest in integrating the token into their operations, according to Business Insider Japan.
JPYC EX: Japan’s New Stablecoin Infrastructure
Alongside the token, JPYC introduced JPYC EX — a dedicated issuance and redemption platform built to meet Japan’s strict financial standards under the Act on Prevention of Transfer of Criminal Proceeds.
Users can deposit yen via bank transfer to receive JPYC directly into their registered digital wallets, with the option to convert back to yen through verified withdrawal accounts.
Okabe stated that JPYC aims to achieve a circulating supply of 10 trillion yen within three years, positioning the company as a key player in creating Japan’s next-generation financial infrastructure.
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Japan’s Stablecoin Market Heats Up
JPYC’s launch arrives amid intense global competition in the $308 billion stablecoin market, currently dominated by USD-pegged assets like Tether (USDT) and Circle’s USDC — both of which have already made their entry into Japan.
However, JPYC is unlikely to stand alone for long.
Financial giant Monex Group has revealed plans for its own yen-backed stablecoin, while Japan’s “big three” banks —
Mitsubishi UFJ Financial Group (MUFG),
Sumitomo Mitsui Banking Corporation (SMBC), and
Mizuho Bank — are collaborating to issue a joint stablecoin on MUFG’s Progmat platform.
Adding to the momentum, Japan’s Financial Services Agency (FSA) is reportedly reviewing new crypto regulations that could soon allow banks to hold cryptocurrencies like Bitcoin (BTC) for investment purposes — signaling a major policy shift toward digital assets.
A New Chapter for Japan’s Digital Finance
With JPYC’s pioneering launch, Japan has taken a decisive step toward integrating blockchain technology into its national financial ecosystem.
As global demand for stable, transparent, and compliant digital currencies continues to rise, the JPYC yen-backed stablecoin could mark the start of Japan’s digital finance revolution.
