- JPYC launches Japan’s first yen-backed, FSA-approved stablecoin.
- Japan’s megabanks plan a joint yen stablecoin using MUFG’s Progmat platform.
- JPYC aims to issue up to ¥10 trillion within three years.
JPYC Inc., a Tokyo-based fintech firm, has officially launched Japan’s first yen-backed stablecoin, marking a significant shift in the country’s approach to regulated digital assets.
The stablecoin, named JPYC, went live on October 27, 2025, after receiving approval from Japan’s Financial Services Agency (FSA).
The token is fully backed by domestic bank deposits and Japanese government bonds, ensuring one-to-one convertibility with the yen.
Japan’s bold move toward regulated stablecoins
The launch of JPYC represents a historic moment for Japan, making it among the first nations to circulate a stablecoin that is directly tied to its national currency with explicit regulatory endorsement.
Alongside the token, JPYC introduced JPYC EX, a platform enabling users to issue and redeem the stablecoin.
The system adheres to strict identity verification and anti-money laundering standards under Japan’s Act on Prevention of Transfer of Criminal Proceeds.
Noriyoshi Okabe, chairman of JPYC, described the launch as “an important milestone in the history of the Japanese currency.”
He said the initiative has already attracted interest from seven companies preparing to integrate the token into their services.
The company aims to issue JPYC up to a cumulative value of ¥10 trillion within three years while promoting both domestic and international use.
To encourage adoption, JPYC will not charge transaction fees initially. Instead, it plans to generate revenue from accrued interest on holdings of Japanese government bonds (JGBs).
Okabe explained the goal is to lower settlement costs and support innovation by offering businesses a low-fee digital payments infrastructure.
Megabanks preparing to enter the stablecoin arena
According to a reliable report, Japan’s three largest banks—Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corporation (SMBC) and Mizuho Bank—are also preparing to launch their own yen-backed stablecoins on October 31.
Their joint initiative will use MUFG’s Progmat platform to facilitate corporate settlements and connect hundreds of thousands of payment terminals across Japan.
Industry observers say such institutional participation could accelerate stablecoin adoption.
Tomoyuki Shimoda, a former Bank of Japan official and current academic at Rikkyo University, believes that while yen-based stablecoins may take two to three years to achieve widespread use, megabank involvement could speed up the process.
Nonetheless, regulators and policymakers are proceeding cautiously.
Ryozo Himino, deputy governor of the Bank of Japan, has acknowledged that stablecoins could become “a key player in the global payments system,” potentially altering the role of traditional bank deposits.
Officials remain wary of the risks posed by large-scale outflows of funds from regulated financial systems.
JPYC’s debut signals Japan’s ambitions in digital finance
The global stablecoin market, valued at more than $286 billion, is currently dominated by dollar-pegged assets such as Tether’s USDT and Circle’s USDC, which account for roughly 99% of supply.
Introducing a fully yen-backed digital currency is Japan’s first meaningful step toward diversifying that landscape.
JPYC’s launch reflects broader efforts to modernize Japan’s financial infrastructure. By leveraging blockchain technology and reserves backed by government instruments, the company seeks to build trust in digital payments and improve cross-border interoperability.
As other Asian economies like 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—supported by government bonds and regulatory approval—creates a unique precedent for how digital currencies can coexist with traditional financial systems while aiming to reduce costs and foster innovation.