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Japanese fintech company JPYC Inc. has launched JPYC, the country’s first legally recognized yen-backed stablecoin. Transactions commenced on Monday through the company’s platform, JPYC EX. The company was registered as a funds transfer service provider with the Financial Services Agency (FSA) in August, confirming the stablecoin’s 1:1 peg to the Japanese yen.
A Legally Regulated, Multi-Blockchain Stablecoin
JPYC stands out as the first fully regulated stablecoin issued under Japan’s Payment Services Act. The company supports the entire token supply with 100% yen deposits and government bonds. The stablecoin operates on the Avalanche , Ethereum $4,150 , and Polygon networks. JPYC Inc. has indicated that users with validated identities through the “My Number” system can purchase the token via the JPYC EX platform.
The company aims for a circulation target of 10 trillion yen (approximately 65.4 billion dollars) within three years. Reaching this scale could position JPYC as a regional player in the global stablecoin market, following giants like USDT and USDC. JPYC Inc. plans to grow by integrating with various blockchains and forming corporate partnerships.
Extensive Ecosystem Support from Japanese Companies
Numerous Japanese technology and financial firms are preparing to integrate JPYC into their products. Densan System is developing solutions to incorporate stablecoin-based payment systems into both physical stores and e-commerce infrastructures. Asteria plans to add transaction capabilities with JPYC to its corporate data integration software. Additionally, HashPort has announced that JPYC transfers will be supported within its wallet application.
Japan’s mid-2023 legal revisions have placed stringent oversight on stablecoin issuance and circulation. This regulation imposes an official registration requirement for banks and funds transfer organizations. Prominent financial entities like SMBC have further invigorated the sector by announcing their own stablecoin initiatives in collaboration with Ava Labs and Fireblocks in April.
