Japan Startup to Issue First Yen-Pegged Stablecoin

Japanese startup JPYC announced plans to launch the country’s first yen-pegged stablecoin later this year, marking a milestone in Japan’s digital finance landscape. The company secured a regulatory license this week, paving the way for the new asset.

Backed by Yen and Government Bonds

The upcoming stablecoin, called JPYC, will be fully convertible to the Japanese yen. CEO Noritaka Okabe said JPYC will back the stablecoin with domestic savings and Japanese government bonds (JGBs) to ensure stability and trust.

Targeting Institutional Investors

At the launch, JPYC expects its yen-pegged stablecoin to attract interest primarily from institutional investors, hedge funds, and family offices in Japan. Notably, the startup will not charge transaction fees. Instead, revenue will come from the interest generated on the JGBs held to support issuance.

Growing Global Momentum

This development comes at a time when blockchain-based stablecoins are rapidly gaining global traction. These tokens, typically pegged to fiat currencies, are increasingly recognized for offering faster, cheaper, and more efficient cross-border transactions.

U.S. Pushes Forward with Stablecoin Regulation

In the United States, President Donald Trump signed into law new federal guidelines for stablecoins in July. This legislation aims to promote adoption in everyday payments and settlements. Additionally, large financial institutions such as Bank of America and Fiserv are preparing to launch their own dollar-backed stablecoins.

China Maintains a Restrictive Approach

By contrast, mainland China continues to impose restrictions on digital assets. Regulators have recently instructed major local brokers to stop publishing research that promotes stablecoins. This move reflects Beijing’s ongoing efforts to limit enthusiasm and prevent a surge in domestic demand.

The Bigger Picture

With JPYC’s yen-pegged stablecoin, Japan is positioning itself alongside other leading markets embracing digital currency innovation.

As stablecoins move into the mainstream, the launch will be a critical test of how regulated, fiat-backed tokens can integrate with traditional financial systems.

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