A fintech company based in Tokyo, JPYC, has rolled out Japan’s inaugural yen-backed stablecoin alongside a platform designed for issuing this new currency. This initiative occurs amidst an intensifying global competition in the market.
The Japanese yen stablecoin, JPYC, went operational this Monday, maintaining a one-to-one backing with bank deposits and government bonds, directly mirroring the yen’s value. This news was officially reported last Friday.
In a press conference held in Tokyo, Noriyoshi Okabe, President of JPYC, expressed that the launch marks a significant achievement in the evolution of Japanese currency. Furthermore, the stablecoin has attracted the interest of seven distinct companies eager to integrate it into their services, as noted in a report from Business Insider Japan.
JPYC
Source: Noriyoshi Okabe
The launch of JPYC coincides with a burgeoning global stablecoin market, which is primarily dominated by dollar-pegged assets such as USDT and USDC, achieving a market capitalization exceeding $308 billion. Notably, US dollar stablecoins have established a presence in Japan, with USDC launching in the country on March 26.
Launch of the Stablecoin Platform
Alongside its stablecoin, JPYC has introduced JPYC EX, a specialized platform tailored for the issuance and redemption of this token, governed by stringent identity and transaction verification protocols prescribed under the Act on Prevention of Transfer of Criminal Proceeds.
Users can transfer Japanese yen to their accounts through bank deposits to receive JPYC in a designated wallet, also providing an option for refunds in yen to a withdrawal account.
In the long run, JPYC aims to pursue an issuance goal of 10 trillion yen over the next three years, aspiring to forge a new social infrastructure via stablecoins.
Other Potential Stablecoin Competitors in Japan
JPYC may face competition soon as Monex Group, a financial services provider based in Tokyo, revealed its intentions in August to launch a stablecoin pegged to the yen.
Meanwhile, three major Japanese banks—Mitsubishi UFJ Financial Group, Bank Sumitomo Mitsui Banking Corporation, and Mizuho Bank—are also looking to collaborate on a yen-pegged stablecoin through MUFG’s stablecoin issuance platform Progmat.
Simultaneously, the Financial Services Agency of Japan appears ready to investigate regulatory frameworks that might enable banks to hold cryptocurrencies like Bitcoin for investment agendas.
