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Japan Enters Stablecoin Race With Launch of Yen Pegged JPYC

Japan Enters Stablecoin Race With Launch of Yen-Pegged JPYC

Tokyo fintech JPYC Inc. debuts Japan’s first yen-backed stablecoin to drive faster, low-cost digital settlements.

Written by Rahul Dhingra, Edited by Ketan Pratap | Updated: 27 October 2025 16:39 IST

Japan Enters Stablecoin Race With Launch of Yen-Pegged JPYC

Photo Credit: Unsplash/note thanun

JPYC President Noriyoshi Okabe calls the launch a “major milestone” in Japan’s currency evolution

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Highlights

JPYC is fully backed by yen and government bonds
Seven firms plan to adopt the new stablecoin
Experts say mass use may take two to three years

Japan has entered the global stablecoin race with the launch of its first yen-backed digital currency, JPYC. It marks a significant step in the country's financial innovation. The stablecoin, which is created by Tokyo-based fintech company JPYC Inc., has a fixed 1:1 exchange rate with the yen and is fully backed one-to-one by Japanese yen held in government bonds and bank deposits. The launch positions Japan within the growing global stablecoin market, which has so far been dominated by dollar-pegged assets such as USDT and USDC.

Japan's First Yen-Backed Stablecoin Aims to Boost Financial Innovation

JPYC President Noriyoshi Okabe described the launch at a press conference in Tokyo as “a major milestone in the history of Japanese country.” He further added that seven businesses have already expressed interest in incorporating the stablecoin into their financial and payment systems. Alongside the token, the firm has also launched a dedicated platform, JPYC EX, for issuing and redeeming JPYC under Japan's Act on Prevention of Transfer of Criminal Proceeds, ensuring stringent identity and transaction verification measures.

ついに、日本円建初のステーブルコインJPYCが！
JPYCの発行償還が開始されました。https://t.co/X3gLEVRFs7

【開発者向け】
コントラクトアドレスは契約前準備書面をご覧ください。https://t.co/hHpY0HIyCW
— 岡部典孝　JPYC代表取締役 (@noritaka_okabe) October 27, 2025

Users can acquire JPYC by depositing yen through bank transfers and receiving the tokens in registered digital wallets. In order to give users a clear and controlled process, the platform also permits redemptions back into yen. JPYC aims to achieve an issuance balance of JPY 10 trillion (roughly Rs. 5,75,000 crore) within three years.

The company hopes its stablecoin will enable startups and institutions to benefit from faster, low-cost settlements, fostering innovation in Japan's digital economy.

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This decision aligns with growing interest in blockchain-based assets from Japanese regulators and financial institutions. Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corp, and Mizuho Bank are preparing to jointly issue a yen-pegged stablecoin through MUFG's Progmat platform. Regulations that would allow banks to hold cryptocurrencies such as Bitcoin for investment purposes are expected to be reviewed by the Financial Services Agency in the interim.

Experts such as former Bank of Japan executive and Rikkyo University academic Tomoyuki Shimoda told Reuters that yen-backed stablecoins may take time to gain traction compared with their dollar-based counterparts. Shimoda further added that although broad adoption might take “two to three years,” programs like JPYC are a crucial first step in updating Japan's financial system for the digital era.

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Further reading: Yen, Japan Cryptocurrency, crypto adoption, Cryptocurrency

Rahul Dhingra

Email Rahul Dhingra

Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More