Japan has officially entered the stablecoin market with the launch of its first yen-denominated stablecoin, JPYC. Tokyo-based JPYC Inc. began issuing the token on October 27, 2025, following approval under Japan’s Payment Services Act. The company had registered as a licensed fund-transfer service provider with the Financial Services Agency (FSA) in August.

Each JPYC token maintains a one-to-one peg with the Japanese yen and is fully backed by domestic bank deposits and Japanese government bonds. Users can issue or redeem JPYC through the dedicated JPYC EX platform, which requires identity verification using Japan’s My Number card system. The stablecoin currently operates on Ethereum, Avalanche, and Polygon, with more blockchains to follow.

Shortly before the official launch, JPYC Inc. posted a maintenance notice on X, announcing that the JPYC EX website would be temporarily unavailable from 12:30 p.m. to 1:00 p.m. Japan time for final setup. The post confirmed that the platform was entering its live phase later that afternoon, aligning with the company’s previously stated launch date.

JPYC Inc. emphasized that all tokens are backed by reserves held in yen and Japanese government bonds, ensuring transparency and compliance. This structure aligns with Japan’s broader regulatory reforms, which now recognize stablecoins as legitimate digital payment instruments under domestic oversight.

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A New Phase for Japan’s Digital Economy

JPYC’s launch marks an important moment for Japan’s growing digital-finance landscape. By offering a regulated on-chain version of the yen, the company hopes to enable faster, lower-cost settlements and open a gateway for blockchain-based payments. To encourage early adoption, JPYC has waived transaction fees at launch and will rely instead on interest earned from its government bond reserves.

Several firms in Japan have already begun exploring integration with JPYC. Software company Densan System is developing a retail payment system for stores and online businesses, while Asteria plans to embed JPYC support into its enterprise software used by thousands of companies. Crypto wallet provider HashPort also announced plans to support JPYC transfers in upcoming updates.

The move follows Japan’s regulatory reforms in 2023 that allowed licensed institutions to issue stablecoins under the supervision of the Financial Services Agency. This launch could help diversify Asia’s liquidity landscape, which remains heavily dependent on dollar-pegged tokens. Analysts note that a functioning yen-based stablecoin could strengthen local settlement infrastructure and reduce reliance on foreign-currency stablecoins.

In parallel, Japan’s major banks are preparing their own stablecoin projects. Sumitomo Mitsui Financial Group recently revealed plans to collaborate with U.S. blockchain firms Ava Labs and Fireblocks to issue a separate stablecoin, highlighting growing interest in regulated digital yen products.

Meanwhile, traditional lenders are joining the trend. Nikkei reported, Sumitomo Mitsui Financial Group is developing its own stablecoin in partnership with U.S. blockchain firms Ava Labs and Fireblocks, highlighting the growing institutional interest in regulated yen-backed tokens.

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What JPYC’s launch means for Japan’s future

The debut of JPYC represents more than a single product launch. It signals Japan’s readiness to merge traditional finance with blockchain technology under clear legal oversight. If adoption grows, yen-based tokens could become key instruments for both retail payments and corporate treasury functions.

For now, the rollout of JPYC will serve as Japan’s first live experiment in regulated digital currency. The combination of full reserve backing, transparent governance, and official licensing gives it a strong foundation to build public confidence. As Japan continues refining its digital-asset framework, the success of this yen-denominated stablecoin could pave the way for broader use of on-chain financial services across the country.