- JPYC launches Japan’s first yen-backed, FSA-approved stablecoin.
- Japan’s megabanks plan joint yen-stablecoin via MUFG’s Progmat.
- JPYC targets 10 trillion yen issuance within three years.
JPYC Inc., a Tokyo-based fintech company, has officially launched Japan’s first yen-backed stablecoin, signalling a major shift in the nation’s approach to regulated digital assets.
The stablecoin, named JPYC, went live on October 27, 2025, following approval from Japan’s Financial Services Agency (FSA).
The stablecoin is fully backed by domestic bank deposits and Japanese government bonds, ensuring one-to-one convertibility with the yen.
Japan’s bold step into regulated stablecoins
The launch of JPYC marks a historic moment for Japan, making it the first country to circulate a stablecoin fully pegged to its national currency with full regulatory backing.
Alongside the stablecoin, JPYC introduced JPYC EX, a platform that enables users to issue and redeem the token.
The system follows strict identity verification and anti-money-laundering standards under Japan’s Act on Prevention of Transfer of Criminal Proceeds.
JPYC’s President, Noriyoshi Okabe, described the launch as a “major milestone in the history of Japanese currency.”
He said the initiative has already attracted interest from seven companies preparing to incorporate the coin into their services.
The company aims to issue up to 10 trillion yen worth of JPYC within three years while promoting it for both domestic and international use.
To encourage adoption, JPYC will not charge transaction fees initially. Instead, it will earn revenue from interest accrued on Japanese government bond (JGB) holdings.
Okabe explained that the goal is to reduce settlement costs and support innovation by offering businesses a low-fee digital transaction system.
Megabanks prepare to enter the stablecoin arena
According to a credible source, Japan’s three largest banks — Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corporation, and Mizuho Bank — are also preparing to launch their own yen-backed stablecoins on October 31.
Their joint initiative will use MUFG’s Progmat platform to facilitate corporate settlements, connecting hundreds of thousands of payment terminals across Japan.
Experts say these institutional moves could accelerate stablecoin adoption.
Tomoyuki Shimoda, a former Bank of Japan executive and current academic at Rikkyo University, believes that while yen-based stablecoins may take two to three years to achieve widespread use, megabank participation could quicken the pace.
But despite optimism, regulators and policymakers are treading carefully.
The Bank of Japan’s Deputy Governor, Ryozo Himino, has acknowledged that stablecoins could become “a key player in the global payment system,” potentially altering the role of traditional bank deposits.
However, officials remain cautious about the risks of funds flowing outside regulated financial systems.
JPYC’s debut signals Japan’s digital finance ambitions
The global stablecoin market, valued at over $286 billion, is currently dominated by dollar-pegged assets like Tether’s USDT and Circle’s USDC, which make up around 99% of total supply.
The introduction of a fully yen-backed digital currency represents Japan’s first significant step toward diversifying that landscape.
JPYC’s launch also reflects Japan’s broader ambitions to modernise its financial infrastructure.
By leveraging blockchain technology and government-backed reserves, the firm hopes to build trust in digital payments and enhance cross-border interoperability.
As other Asian economies such as South Korea and China explore similar initiatives, Japan’s early move could position it as a regional leader in stablecoin innovation.
JPYC’s no-fee model, backed by government bonds and regulatory approval, sets a unique precedent for how digital currencies can coexist with traditional financial systems.
