Japan launches its first stablecoin pegged to the yen

JPYC, a company specializing in electronic payments, has obtained a license to issue a stablecoin that will be pegged to the Japanese yen at a ratio of 1:1. Registration as a financial operator took place on August 18, 2025, in accordance with the Financial Payments Act. The new initiative became possible after amendments to the legislation came into force on June 1, 2023, allowing only registered companies to develop electronic payment methods such as stablecoins.

Source Prtimes

The JPYC stablecoin is backed by Japanese yen held in banks and government bonds, which guarantees its convertibility back into regular currency. Three blockchains are planned to be used for the issuance and circulation of JPYC: Ethereum, Avalanche, and Polygon. JPYC is not a cryptocurrency because its value is fixed, unlike assets that are subject to volatility risks.

In the near future, the company plans to launch JPYC issuance and exchange services, which will include the ability to exchange between Japanese yen and stablecoin, as well as expand its use in various areas, such as payments, money transfers, and cooperation with third-generation web services. In this way, JPYC aims to become an important element in the development of digital finance in Japan and beyond.