JPYC Launches Japan's First Yen-Backed Stablecoin Amid Global Market Expansion

According to Cointelegraph, Tokyo-based fintech company JPYC has introduced Japan's first yen-backed stablecoin, JPYC, alongside a platform for its issuance. This development marks a significant step in the global race to dominate the expanding stablecoin market. The JPYC stablecoin, which became available on Monday, is backed one-to-one by bank deposits and government bonds, maintaining a 1:1 exchange rate with the yen. JPYC President Noriyoshi Okabe described the stablecoin as a 'major milestone in the history of Japanese currency' during a press conference in Tokyo. The initiative has already garnered interest from seven companies planning to integrate the stablecoin into their operations, as reported by Business Insider Japan. JPYC's launch comes at a time when the global stablecoin market, primarily led by dollar-pegged assets like USDT and USDC, has reached a market capitalization exceeding $308 billion. Notably, US dollar stablecoins have already made inroads into Japan, with Circle introducing USDC in the country earlier. In addition to the stablecoin, JPYC has unveiled JPYC EX, a platform dedicated to issuing and redeeming the token. This platform operates under stringent identity and transaction verification protocols as mandated by the Act on Prevention of Transfer of Criminal Proceeds. Users can deposit Japanese yen via bank transfer to receive JPYC in a registered wallet and can also convert it back to yen for withdrawal. Looking ahead, JPYC aims to achieve an issuance balance of 10 trillion yen within the next three years, aspiring to establish a new social infrastructure through stablecoins. The stablecoin landscape in Japan is poised for further competition. Monex Group, another Tokyo-based financial services firm, announced plans in August to launch its own yen-pegged stablecoin. Additionally, three of Japan's largest banks—Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corp., and Mizuho Bank—are collaborating to issue a yen-pegged stablecoin on MUFG's Progmat platform. Concurrently, Japan's Financial Services Agency is reportedly considering regulatory reviews that could permit banks to acquire and hold cryptocurrencies, such as Bitcoin, for investment purposes.