JPYC launches Japan’s first yen-backed stablecoin, fully collateralized by bank deposits and government bonds, and deployed on Ethereum and Polygon.
JPYC, a Tokyo-based fintech firm, has officially launched a Japanese Yen-backed stablecoin amid the rising global demand for the digital asset class. The JPYC stablecoin from the Japanese fintech is fully backed 1:1 by bank deposits and government bonds, maintaining parity with the Japanese yen.
Yen-Backed JPYC Stablecoin Launches on Ethereum, Polygon
The global stablecoin market, mostly dominated by USD-pegged stablecoins, has reached over $300 billion. As a result, other global markets are exploring potential opportunities with Euro-backed or Yen-backed digital assets.
At a press conference in Tokyo, JPYC President Noriyoshi Okabe described the launch as a “major milestone in the history of Japanese currency.” He also revealed that seven companies have already expressed interest in integrating the new stablecoin into their operations.
Alongside the stablecoin launch, JPYC has introduced JPYC EX, a dedicated platform for issuing and redeeming the token. The platform operates under Japan’s Act on Prevention of Transfer of Criminal Proceeds. It also ensures strict identity verification and transaction monitoring.
Through JPYC EX, users can deposit Japanese yen via bank transfer to receive JPYC tokens in a registered wallet and redeem them back into yen through a linked withdrawal account.
Looking ahead, JPYC aims to reach an issuance balance of 10 trillion yen within the next three years. Thus, it aims to position its stablecoin as a foundation for a new digital financial infrastructure in Japan.
Japan Might Soon Face A Stablecoin Rush
JPYC may soon face competition in Japan’s emerging stablecoin market. Monex Group, a Tokyo-based financial services firm, announced plans in August to launch its own yen-pegged stablecoin.
Meanwhile, Japan’s three largest banks, Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corp, and Mizuho Bank, are reportedly working together to issue a yen-backed stablecoin through MUFG’s Progmat issuance platform.
In parallel, Japan’s Financial Services Agency (FSA) is reportedly considering a regulatory review that could allow banks to hold and invest in cryptocurrencies such as Bitcoin (BTC), signaling a broader shift toward digital asset adoption in the country.
According to the latest data from blockchain analytics firm Glassnode, the Stablecoin Supply Ratio (SSR) Oscillator remains near cycle lows, reflecting abundant stablecoin liquidity relative to Bitcoin.
The Stablecoin Supply Ratio (SSR) Oscillator continues to sit near cycle lows, indicating ample stablecoin liquidity relative to Bitcoin. Historically, such periods precede stronger bid-side support when market confidence returns.
🔗https://t.co/K7LOYR2QtX pic.twitter.com/RMwnSXklUC
— glassnode (@glassnode) October 27, 2025
Glassnode noted that historically, such conditions tend to precede stronger buying activity as market confidence improves, suggesting that the crypto market may be positioned for renewed upside momentum once sentiment turns bullish.
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