JPYC Inc. officially launched its yen-backed stablecoin JPYC and the dedicated issuance and redemption platform JPYC EX on October 27, marking a historic step for Japan’s regulated digital currency market.

RECENT: First Yen-backed stablecoin just got launched in Japan

Tokyo-based fintech firm JPYC launched Japan's first legally recognized yen-backed stablecoin along with a platform to issue the new coin.

JPYC stablecoin is backed one-to-one by bank deposits and government bonds. pic.twitter.com/iWixTs98Rp

— InvestorsKeep (@investors_keep) October 27, 2025

According to the official announcement, JPYC is fully backed by bank deposits and Japanese government bonds, maintaining a strict 1:1 peg to the Japanese yen. The company has received a money transmission business license from Japan’s Financial Services Agency (FSA) under the revised Payment Services Act, becoming the first firm in the country legally authorized to issue a stablecoin.

A Fully Regulated Digital Yen Alternative

Unlike cryptocurrencies, JPYC is not classified as a crypto asset but as an electronic payment instrument.
JPYC CEO Noritaka Okabe clarified:

“JPYC is not a cryptocurrency . It’s a fiat-linked payment asset whose value is tied directly to the Japanese yen.”

At launch, the token will be available across Ethereum, Avalanche, and Polygon, offering full convertibility with fiat yen. The system provides businesses and individuals with a secure and regulation-compliant digital currency for payments, transfers, and blockchain-based financial services.

Japan’s Stablecoin Market Poised for Massive Growth

The JPYC launch was made possible through Japan’s comprehensive regulatory framework for stablecoins introduced in 2024, establishing clear legal standards for issuance, reserves, and redemption.

JPYC had previously operated as a prepaid digital payment service since 2021, laying the groundwork for compliance. Its registration as a licensed money transmitter gave it the legal authority to issue stablecoins.

Market analysts forecast the yen stablecoin market could reach USD 260–550 billion over the next five years, aligning with the broader digital finance transformation led by Japan’s top banks, including Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho, which are developing their own stablecoins.

Still, JPYC remains the first independently issued, FSA-approved yen-pegged stablecoin, offering a compliant alternative in a space long dominated by speculative crypto assets.

Strengthening Japan’s Financial Infrastructure

Experts suggest that regulated stablecoins like JPYC could boost demand for Japanese government bonds, which serve as backing assets, potentially strengthening the country’s bond market.

By avoiding the volatility and exchange risks of traditional cryptocurrencies, JPYC offers businesses a trusted bridge between fiat and Web3, enabling smoother settlements, faster cross-border transactions, and compatibility with next-generation fintech systems.

JPYC’s reserves are held in licensed financial institutions and consist solely of yen-denominated deposits and sovereign debt instruments, ensuring transparency and full collateralization.

Global and Domestic Expansion Plans

JPYC Inc. plans to expand its ecosystem by integrating stablecoin-based payments into NFT games, Web3 protocols, and international remittance services. The company aims to enhance the convenience of yen-based stablecoins for both retail and institutional users in Japan and abroad.

Industry observers view the launch as a turning point for Japan’s digital finance strategy, alongside initiatives such as Japan Post Bank’s DCJPY and the RLUSD stablecoin developed by SBI Holdings and Ripple.

By aligning with the global momentum of stablecoin regulation seen in Hong Kong, South Korea, Europe, and the U.S., Japan is positioning itself as a regional leader in compliant digital currency innovation.

The debut of JPYC and JPYC EX marks Japan’s first legally recognized stablecoin issuance, signaling the start of a regulated digital yen era. Backed by real-world assets and strict oversight, JPYC could become a model for how fiat-pegged stablecoins coexist with traditional finance, setting a new global benchmark for trust, compliance, and interoperability.