Japan Prepares to Launch Its First Yen-Pegged Stablecoin!

Updated

August 18, 2025

Gambar Japan Prepares to Launch Its First Yen-Pegged Stablecoin!

Jakarta, Pintu News – Japan’s Financial Services Agency (JFSA) has approved the first yen-denominated stablecoin. The approval gives fintech company JPYC Inc. permission to issue its digital token. The company plans to launch the stablecoin by the end of this year.

According to a Nikkei report published on August 18, the regulator plans to register JPYC as a money transfer service provider within this month, with token distribution scheduled to begin shortly thereafter.

The initiative is a milestone in Japan’s efforts to modernize its financial system, providing a stablecoin that serves as a digital representation of the yen while complying with strict domestic regulations.

Digital Yen Alternatives in the Payment Landscape

Stablecoins issued by JPYC Inc, a Tokyo-based fintech company founded in 2019, are an alternative to the digital yen in the payments ecosystem. The company focuses on blockchain technology and digital assets, particularly stablecoins pegged to the Japanese yen.

In 2021, Circle, the issuer of the USDC stablecoin, invested in JPYC through Circle Ventures, while JPYC raised around 500 million yen in Series A funding. The yen-pegged JPYC stablecoin serves as a prepaid payment instrument, allowing for 1:1 accounting treatment with yen.

Furthermore, JPYC CEO Norikata Okabe confirmed via X (formerly Twitter) the investment, including from Circle:

“JPYC receives direct investment or through CVCs from public companies such as Circle, Asteria, Densan System, Persol, Aiful, and others. In addition, there are public companies that invest in JPYC confidentially. We also appointed Simplex to develop our trading system.”

The JPYC-branded stablecoin is available as an ERC-20 token on Ethereum , as well as other blockchains such as Polygon and Shiden.

JPYC maintains a 1:1 equivalence with the Japanese yen and supports its issuance through bank deposits as well as government bonds, so this liquidity provides protection to maintain price stability.

In practice, consumers can acquire tokens by transferring funds, and the equivalent amount of JPYC will be credited to their digital wallets. This structure is similar to the operational mechanism of dollar-based stablecoins, which have grown into a global market worth more than $285 billion.

Regulatory Oversight and Market Integrity

The Financial Services Authority of Japan (FSA) views this approval as more than just a regulatory formality. The stablecoin is designed to create a secure domestic ecosystem, support cashless transactions and international remittances, and also facilitate corporate payments.

Yen-pegged stablecoins offer individuals a new digital payment method, while companies can reduce foreign exchange costs in cross-border trade. As such, these stablecoins present opportunities for both parties.

Despite their promise, stablecoins still raise concerns regarding money laundering, illegal transfers and systemic risks.

The FSA emphasized that JPYC’s operations will fall under the framework of Japan’s Payment Services Act, with enhanced monitoring and compliance obligations.

JPYC Inc. is committed to making regulatory compliance a priority. Last July, CEO Norikata Okabe spoke at the IVC Summit 2025, stating that JPYC is preparing a “new version” of its token, reflecting evolving regulatory and market demands.

Competitive Pressures and Strategic Outlook

The Japanese market already has exposure to US dollar-pegged stablecoins, primarily through SBI VC Trade which handles USDC. However, the approval of JPYC as a yen-based token brings a new market dimension.

The success of this token will depend on its ability to achieve widespread adoption amidst the dominance of dollar-related instruments.

Going forward, yen stablecoins have the potential to intersect with broader financial innovations. Applications could range from e-commerce platforms to digital securities markets, with easy integration into these systems.

This stablecoin could also be a bridge to the possible launch of a central bank digital currency (CBDC). If the yen-pegged token catches on, it could accelerate the digitization of Japan’s payment infrastructure, while overhauling consumer behavior and corporate finance practices.

That’s the latest information about crypto. Follow us on Google News to get the latest information about the world of crypto and blockchain technology. Check today‘ s bitcoin price, today‘ s solana price, pepe coin and other crypto asset prices through Pintu Market.

Enjoy an easy and secure crypto trading experience by downloading Pintu crypto app via Google Play Store or App Store now. Also, get a web trading experience with various advanced trading tools such as pro charting, various types of order types, and portfolio tracker only at Pintu Pro.

*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference: