Tokyo-based fintech firm JPYC has launched Japan’s first yen-backed stablecoin, marking a significant development in the growing global race to capture the expanding stablecoin market. The Japanese yen stablecoin, JPYC, went live on Monday and is backed one-to-one by bank deposits and government bonds. It also maintains a 1:1 exchange rate with the yen, the company confirmed on Friday.
At a press conference in Tokyo, JPYC President Noriyoshi Okabe described the stablecoin as a “major milestone in the history of Japanese currency.” The new coin has already attracted interest from seven companies planning to incorporate it into their operations, according to a report from Business Insider Japan.
### Stablecoin Market Context
JPYC’s launch comes as the global stablecoin market, dominated by dollar-pegged assets such as Tether’s USDT and Circle’s USDC, has surged to a market capitalization exceeding $308 billion. US dollar stablecoins have gained a foothold in Japan as well, with Circle launching USDC in the country on March 26.
### Stablecoin Platform Launch: JPYC EX
Alongside the stablecoin release, JPYC introduced JPYC EX, a dedicated platform designed for issuing and redeeming the token. The platform operates under strict identity and transaction verification protocols in compliance with Japan’s Act on Prevention of Transfer of Criminal Proceeds.
Looking ahead, JPYC aims to achieve an issuance balance of 10 trillion yen within the next three years. The company envisions stablecoins playing a pivotal role in creating new social infrastructure in Japan.
### Potential Competitors in the Japanese Stablecoin Space
JPYC may soon face competition in Japan’s stablecoin market. In August, Monex Group, a Tokyo-based financial services company, announced plans to launch its own yen-pegged stablecoin.
Moreover, three of Japan’s largest banks—Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corporation, and Mizuho Bank—are collaborating on issuing a yen-pegged stablecoin through MUFG’s stablecoin issuance platform, Progmat.
### Regulatory Developments
At the same time, Japan’s Financial Services Agency (FSA) is reportedly preparing to review regulations that could allow banks to acquire and hold cryptocurrencies, such as Bitcoin (BTC), for investment purposes. These regulatory changes could further influence the growth and adoption of stablecoins in Japan.
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JPYC’s launch marks a notable advancement for Japan’s digital currency ecosystem and highlights the nation’s increasing engagement with blockchain-powered financial technologies.
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