- JPYC launches Japan’s first yen-backed stablecoin approved by the FSA.
- Japan’s megabanks are preparing a joint yen-backed stablecoin via MUFG’s Progmat platform.
- JPYC aims for up to ¥10 trillion in issuance within three years.
Tokyo-based fintech firm JPYC Inc. has officially launched the country’s first yen-backed stablecoin, marking a significant shift in Japan’s approach to regulated digital assets.
The stablecoin, named JPYC, was launched on October 27, 2025, following approval from the Financial Services Agency (FSA).
Reserves consist entirely of domestic bank deposits and Japanese government bonds, ensuring one-to-one convertibility with the yen.
Japan’s bold move into regulated stablecoins
JPYC’s debut is a historic moment for Japan: it is the first stablecoin fully pegged to the national currency that has received formal regulatory approval in the country.
Alongside the token, JPYC introduced JPYC EX, a platform enabling users to mint and redeem the stablecoin.
The system enforces strict identity verification and anti-money-laundering measures in line with Japan’s Act on Prevention of Transfer of Criminal Proceeds.
Noriyoshi Okabe, CEO of JPYC, called the launch “a significant milestone in the history of Japan’s currency.”
He said the initiative has already attracted interest from seven companies preparing to integrate the coin into their services.
The company aims to issue up to ¥10 trillion worth of JPYC within three years and promote it for both domestic and international use.
To encourage adoption, JPYC will initially waive transaction fees. Instead, it will generate revenue from interest earned on holdings of Japanese government bonds (JGBs).
Okabe explained the objective is to lower settlement costs and support innovation by offering businesses an affordable digital transaction system.
Megabanks prepare to enter the stablecoin arena
According to a credible source, Japan’s three largest banks—Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corporation and Mizuho Bank—are also preparing to issue their own yen-backed stablecoins on October 31.
The banks plan to use MUFG’s Progmat platform to facilitate corporate settlements and connect hundreds of thousands of payment terminals across Japan.
Experts say these institutional moves could accelerate stablecoin adoption.
Tomoyuki Shimoda, a former Bank of Japan official and current academic at Rikkyo University, believes that while broad use of yen-backed stablecoins may take two to three years, participation by the megabanks could speed that timeline.
Despite the optimism, regulators and policymakers are proceeding cautiously.
Ryozo Himino, Deputy Governor of the Bank of Japan, has acknowledged that stablecoins could become “a central player in the global payments system,” potentially reshaping the role of traditional bank deposits.
Authorities remain wary of risks associated with funds moving outside regulated financial systems.
JPYC’s debut signals Japan’s digital finance ambitions
Global stablecoin markets, currently worth more than $286 billion, are dominated by dollar-pegged assets such as Tether’s USDT and Circle’s USDC, which together comprise roughly 99% of supply.
The introduction of a fully yen-backed digital currency is Japan’s first major step toward diversifying that landscape.
JPYC’s launch also reflects Japan’s broader aim to modernize its financial infrastructure.
By leveraging blockchain technology and government-backed reserves, the firm hopes to build trust in digital payments and improve cross-border interoperability.
As other Asian economies, including South Korea and China, explore similar initiatives, Japan’s early move could position it as a regional leader in stablecoin innovation.
JPYC’s fee-free model, backed by government bonds and regulator approval, creates a distinctive precedent for how digital currencies might coexist alongside traditional financial systems.