- 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 introduced Japan’s first yen-backed stablecoin, marking a major 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 decisive move into regulated stablecoins
The launch of JPYC represents a historic moment for Japan, making it the first nation to circulate a stablecoin fully tied to its national currency with full regulatory backing.
Alongside the token, JPYC introduced JPYC EX, a platform that enables users to issue and redeem the stablecoin.
The system adheres to strict identity verification and anti-money laundering standards in line with Japan’s Act on Prevention of Transfer of Criminal Proceeds.
Noriyoshi Okabe, president of JPYC, described the launch as a “major milestone in the history of Japanese 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 JPYC worth up to ¥10 trillion within three years while promoting the token for both domestic and international use.
To encourage adoption, JPYC will initially waive transaction fees, generating revenue instead from interest earned on Japanese government bonds (JGBs).
Okabe explained that the goal is to lower settlement costs and foster innovation by offering businesses a low-fee digital payment system.
Megabanks prepare to enter the stablecoin arena
According to credible reporting, 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.
Their joint initiative will leverage MUFG’s Progmat platform to facilitate corporate settlements and connect hundreds of thousands of payment terminals across Japan.
Experts say institutional involvement 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 reach widespread use, participation by megabanks could speed that timeline.
Despite optimism, regulators and policymakers remain cautious.
Bank of Japan Deputy Governor Ryozo Himino has acknowledged that stablecoins could become “a key player in the global payments system,” potentially changing the role of traditional bank deposits.
Officials remain concerned about the risk of funds moving outside regulated financial channels.
JPYC’s debut signals Japan’s digital finance ambitions
The global stablecoin market, valued at more than $286 billion, is currently dominated by dollar-linked assets such as Tether’s USDT and Circle’s USDC, which account for roughly 99% of supply.
The introduction of a fully yen-backed digital currency marks Japan’s first meaningful step toward diversifying that landscape.
JPYC’s launch also reflects Japan’s broader push to modernize its financial infrastructure.
By leveraging blockchain technology and government-supported reserves, the company aims 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, backed by government bonds and regulatory approval, sets a notable precedent for how digital currencies might coexist alongside traditional financial systems.