Japan launches JPYC, world’s first yen-pegged stablecoin
Japan enters the digital finance era with JPYC, the world’s first yen-backed stablecoin, fully guaranteed by domestic savings and government bonds.
Japan has stepped into a new chapter in digital finance with the launch of “JPYC,” the world’s first yen-pegged stablecoin, on Monday. The development marks a meaningful, albeit small, shift in a country still dominated by cash and credit card payments.
The stablecoin is issued by a start-up of the same name, JPYC Inc, and is pegged to the Japanese yen at a 1:1 ratio. Each coin is fully backed by domestic savings and Japanese Government Bonds (JGBs), ensuring transparency and stability in the digital asset.
JPYC aims to issue over ¥10 trillion (about US$66 billion) worth of JPYC coins within the next three years. It hopes the stablecoin will gain international acceptance for cross-border payments. To encourage early adoption, the company will waive transaction fees during the initial rollout phase.
Unlike most digital currencies, JPYC’s main revenue will come from interest earned on government bonds.
“We hope to spur innovation by giving startups access to low transaction and settlement fees,” said JPYC CEO Noritaka Okabe. “Increasing global interoperability would benefit us too, so we're open to capital tie-ups,” he added.
Globally, US dollar–pegged stablecoins still dominate the market, bolstered by President Donald Trump’s pro-digital asset policies. According to the Bank for International Settlements (BIS), dollar-linked coins currently account for more than 99% of the market.
As stablecoin adoption accelerates worldwide, Japan is positioning itself to follow this trend. The Nikkei recently reported that Japan’s three largest banks plan to jointly issue their own yen-based stablecoins to facilitate future digital payment systems.
