JPYC to Launch Yen-Pegged Stablecoin in Autumn 2025

Japanese startup JPYC is set to launch the first yen-pegged stablecoin, called "JPYC," in autumn 2025. The stablecoin will be fully convertible to the Japanese yen and backed by domestic savings and loans. This move aims to provide a more stable and reliable digital currency alternative for the Japanese market.

Japanese startup JPYC is set to launch the first yen-pegged stablecoin, called "JPYC," in autumn 2025. The stablecoin will be fully convertible to the Japanese yen and backed by domestic savings and loans, aiming to provide a more stable and reliable digital currency alternative for the Japanese market.

The stablecoin, which will be named "JPYC," will maintain a 1:1 ratio with the Japanese yen and is expected to be initially adopted by institutional investors, hedge funds, and family offices in Japan. CEO Noritaka Okabe of JPYC Inc. stated that the stablecoin will not charge transaction fees but will generate revenue through interest on Japanese government bonds (JGBs) [1].

The launch of JPYC is part of a broader trend in stablecoin adoption and regulation globally. In the U.S., federal rules for stablecoins were recently enacted, while in Hong Kong, new licensing regimes have been introduced. In contrast, mainland China has taken a stricter approach, banning crypto trading and asking local brokers to cease promoting stablecoin research [2].

Japan's regulatory framework, finalized in June 2023, distinguishes three types of digital currencies, including those issued by funds transfer firms like JPYC and backed by bank deposits and government bonds [3]. The approval of a yen-pegged stablecoin could enhance Japan’s role in international payments, given that the yen is the fourth most widely used currency for cross-border transactions according to SWIFT data [4].

JPYC’s model is designed to generate revenue through interest earned on its JGB holdings, rather than through transaction fees. This approach mirrors strategies employed by major stablecoin issuers in the U.S., where tokens such as Tether’s USDT and Circle’s USDC are backed by a combination of cash and short-term government securities [1]. The move could influence Japan’s bond market dynamics, with widespread adoption of the stablecoin potentially boosting demand for JGBs [3].

The launch of JPYC represents a strategic step in Japan’s broader digital finance strategy. The nation has already seen the introduction of U.S. dollar-backed stablecoins such as Circle’s USDC, which received regulatory approval earlier this year and is now listed on several major exchanges. The approval of a domestic yen-pegged token could encourage further innovation in the sector, with potential implications for monetary policy and institutional investment behavior [3].

As JPYC prepares for its market entry, it will be closely watched by investors and regulators alike for its impact on Japan’s financial system and global payments landscape.

References:
[1] Reuters - Japan startup issue first yen-pegged stablecoin (https://www.reuters.com/sustainability/boards-policy-regulation/japan-startup-issue-first-yen-pegged-stablecoin-2025-08-19/)
[2] CoinDesk - Japan's regulator to approve first yen-denominated stablecoin (https://www.coindesk.com/policy/2025/08/18/japan-s-financial-regulator-to-approve-first-yen-denominated-stablecoin-report)
[3] Coin Telegraph - Japan approves first yen-stablecoin JPYC (https://cointelegraph.com/news/japan-approves-first-yen-stablecoin-jpyc)
[4] Ledger Insights - Japanese stablecoin issuer JPYC receives a license (https://www.ledgerinsights.com/japanese-stablecoin-issuer-jpyc-receives-a-license/)