Japanese startups launching yen-pegged stablecoins after licensing

Stablecoin Overview and Technical Structure

On August 19, 2025, Japanese startup JPYC announced that it has secured regulatory approval to launch the first yen‐pegged stablecoin, also named"JPYC," by autumn 2025. The token will maintain a 1:1 conversion ratio with the Japanese yen and be fully collateralized by domestic savings deposits and Japanese government bonds (JGBs).

Target Market and Adoption Strategy

JPYC’s CEO Noritaka Okabe stated that the primary demand will come from institutional investors, hedge funds and family offices within Japan. The company will charge no transaction fees, generating revenue instead from interest earned on its JGB holdings. Over time, JPYC aims for international adoption, positioning itself as a digital yen payment rail in cross‐border commerce.

Regulatory and Competitive Landscape

The issuance follows President Trump’s July 2025 signature of U.S. stablecoin guidelines under the GENIUS Act, which has spurred growth of dollar‐backed tokens. JPYC will compete with global stablecoins, offering localized currency stability and regulatory clarity under Japan’s robust financial regime.

Future Outlook

Looking ahead, JPYC plans partnerships with Japanese banks and digital wallets, and may seek KYC‐compliant integrations with major crypto exchanges for secondary market liquidity. Industry analysts view a yen‐pegged stablecoin as a significant milestone for Asia’s digital asset infrastructure, potentially facilitating faster remittances and reducing FX friction for Japanese corporates.