FinTech company JPYC Inc. introduced Japan’s first yen-backed stablecoin, fully compliant with the country’s new financial regulations and secured by national currency and government bonds.
JPYC Inc. announced the launch of its stablecoin JPYC, pegged 1:1 to the Japanese yen. The token is backed by 80% Japanese government bonds and 20% bank deposits.
JPYC is the first officially registered stablecoin issued under Japan’s revised Payment Services Act and regulated by Japanese financial authorities.
In 2025, Japan updated the Payment Services Act, which governs electronic payments, FinTech services, and the issuance of digital assets. The new framework allows entities to obtain an electronic payment instruments issuer license, enabling them to issue stablecoins under strict reporting and reserve transparency standards.
Issuance and redemption of JPYC tokens will take place on the JPYC EX platform, offering direct 1:1 conversion. Users can exchange yen for JPYC and back without fees, with a daily transaction limit of ¥1 million (~$7,000) per client. The issuer emphasizes that its reserve transparency and audit mechanisms fully comply with Japanese law, and total reserves will exceed 101% of the total circulation.
JPYC Inc. received its money transfer operator license from the Kanto Local Finance Bureau in August 2025.
The company expects that the launch of JPYC will accelerate the shift toward digital yen payments and reduce Japan’s reliance on dollar-based stablecoins. In the long term, JPYC aims to serve as a tool for international settlements, corporate transactions, and integration between banking and blockchain-based payment systems.
According to the company, the target issuance volume over the next three years is approximately ¥1 trillion (~$6.8 billion). Initial demand is expected to come from institutional clients, including hedge funds and financial institutions seeking a regulated digital asset pegged to the national currency.
In 2024, with support from Japan’s largest financial companies, a cross-border payment platform using stablecoins was launched, and in 2025, major local financial institutions began developing their own stablecoins.
