Japanese fintech firm JPYC announced on August 19, 2025, that it has obtained regulatory approval to launch the first yen-pegged stablecoin in Japan. Under the amended Payment Services Act, JPYC may issue the token, to be named"JPYC", backed one-to-one by deposits and Japanese government bonds (JGBs). The company plans to hold additional JGBs as stablecoin issuance grows, profiting from interest on bond holdings while maintaining full convertibility into yen at all times.
Noritaka Okabe, CEO of JPYC, said the stablecoin will carry zero transaction fees. Initial demand is expected from institutional investors, hedge funds and family offices domestically, with a strategic roadmap to expand usage overseas as a global digital yen. Okabe emphasized that global adoption will be facilitated through partnerships with overseas exchanges and custodians.
The stablecoin’s launch in autumn 2025 comes amid rapid global growth in blockchain-based payments and recent U.S. legislation formalizing digital currency frameworks. In July, President Trump signed the Federal Digital Asset Act, establishing comprehensive guidelines for stablecoin operation in everyday commerce and cross-border settlements. Major U.S. banks and payment firms are also preparing dollar-backed tokens, reflecting growing institutional adoption.
JPYC’s entry into stablecoin markets positions Japan at the forefront of digital currency innovation. Observers note that regulatory clarity, combined with Japan’s robust financial infrastructure, could drive significant demand in Asia and Europe. JPYC plans to onboard global custodial partners and integrate with decentralized finance protocols to broaden use cases beyond remittances, including micropayments and programmable finance applications.
Reporting by The Economic Times. Edited by ETTech Desk.
Comments (0)