Japanese startup JPYC introduces a blockchain-based stablecoin backed by government bonds and yen deposits, aiming to transform payments and drive global digital finance adoption.
In a landmark move for the global fintech and blockchain ecosystem, Japan has officially launched the world’s first yen-pegged stablecoin, marking a bold step in a country still dominated by traditional payment methods like cash and credit cards.
The digital currency, known as JPYC, is issued by Japanese startup JPYC Inc., and is fully convertible to the yen, backed by domestic savings and Japanese government bonds (JGBs). The company hopes this new stablecoin will become a bridge between traditional finance and digital payments, setting the stage for Japan’s next wave of financial innovation.
“We hope to spur innovation by giving startups access to low transaction and settlement fees,” said Noritaka Okabe, CEO of JPYC, during a press briefing. “Increasing global interoperability would benefit us too, so we’re open to capital tie-ups.”
JPYC aims to issue up to 10 trillion yen (approximately USD 66 billion) in stablecoins over the next three years, encouraging widespread use both domestically and overseas. To boost early adoption, the company will waive transaction fees initially, generating revenue instead through interest earned on JGB holdings.
A New Era for Digital Payments in Japan
Stablecoins — digital assets pegged to fiat currencies — are transforming the global payments landscape by enabling faster, cheaper, and more secure transactions. With strong political and financial backing in the United States, dollar-pegged stablecoins currently make up over 99% of global supply, according to the Bank for International Settlements.
Japan, however, is looking to carve its own path. The country’s three megabanks are reportedly preparing to issue their own stablecoins, signaling a broader industry shift toward digital currency innovation.
Despite this momentum, experts remain cautious about how quickly yen-backed stablecoins will take off.
“There’s a lot of uncertainty on whether yen stablecoins will become widespread in Japan,” said Tomoyuki Shimoda, a former Bank of Japan executive and current professor at Rikkyo University. “If megabanks join the market, the pace could accelerate — but it could still take two to three years.”
Balancing Innovation and Regulation
As with all digital currencies, regulation remains a key consideration. Policymakers in Japan have warned that stablecoins could shift funds away from traditional banks, altering the balance of global payment systems.
“Stablecoins might emerge as a key player in the global payment system, partially replacing the role of bank deposits,” BOJ Deputy Governor Ryozo Himino cautioned, calling for global regulatory coordination.
Across Asia, other nations are moving in a similar direction. South Korea is planning to approve won-based stablecoins, while China is exploring yuan-backed digital currencies, underscoring the region’s growing push toward regulated crypto adoption.
Japan’s move to launch JPYC signals both ambition and experimentation — a test of whether digital yen assets can thrive in a market deeply rooted in cash. If successful, the JPYC model could become a template for stablecoin adoption worldwide.
