Summary
1. The Growth of JPYC Hinges on 'Expansion' and 'AI Integration'
The year 2026 is pivotal for JPYC, with the expansion of its use cases and collaboration with AI agents marking a turning point in its growth. The enhancement of its presence as a payment and financial infrastructure is particularly anticipated through initiatives like stable FX and LINE integration.
2. Evolution of AI Agent Payments Could Radically Alter Market Structures
The prospect of AI entities autonomously conducting transactions with their own wallets is becoming increasingly tangible, with expectations for a significant surge in transaction volumes and market size. This suggests the emergence of an economic sphere where AI activity surpasses that of humans.
3. Japan's Regulations Present Both Strengths and Challenges, with JPYC Playing a Role as an International Diversified Currency
While stable legal frameworks and accounting rules provide a competitive edge, regulatory caps pose growth constraints. JPYC also plays an international role in diversifying away from dollar dependency and meeting yen carry demand, potentially contributing to changes in financial and economic structures in the future.
── How do you perceive the year 2026 for JPYC?
Noritaka Okabe (hereafter, Okabe): This year is extremely crucial. The focus lies on two points: 'how far JPYC can expand' and 'how deeply it can integrate with cutting-edge technologies like AI agents.' Depending on these developments, JPYC's position in Japan could change significantly.
── Last year, you launched JPYC as Japan's first stablecoin. How do you feel about its issuance?
Okabe: It has generally met our expectations. However, the service's rollout has been faster than anticipated. What we expected to take six months to a year has materialized in just a few days to a month. The integration with AI has also exceeded expectations. On the other hand, the unexpected aspect is the high usage of off-ramps. Due to a sluggish market, JPYC is being used to convert USDC and others back into yen. The primary use for entering crypto from JPYC is on-ramp purposes.
── Given these insights, what is the most important project for this year?
Okabe: If I had to choose, it would be 'Stable FX.' JPYC has been selected as the representative of the Japanese yen. The key is the official launch and expansion of liquidity. Traditional FX carried risks with T+2 settlements, but on-chain transactions offer near-instant settlements, improving capital efficiency and safety. We anticipate a virtuous cycle of increased trading.
── How is JPYC currently being utilized?
Okabe: Currently, JPYC is traded at a scale of several hundred million yen daily. The core of these transactions includes swaps and DeFi applications. Recently, it has become available on lending protocols like 'Morpho,' and its use in physical stores is gradually expanding. It's being adopted in small businesses like cafes and beauty salons, and even for direct purchases from farmers.
── Crypto payments in small businesses?
Okabe: Larger businesses face internal decision-making delays and require POS system upgrades across all chain stores. However, small businesses can implement it at the manager's discretion. If the business owner has high IT literacy, they can adopt it immediately. Thus, we believe JPYC's adoption will follow a bottom-up approach from the grassroots level.
The infrastructure aspect is also supported by companies like HashPort, which provide user-friendly UX. The introduction of gas-free wallets, support for QR code payments, and credit cards offering cashback in JPYC are laying the groundwork for general use. While stablecoins initially led in DeFi, the foundation for expanding real-world payments is now in place.
※1: The process of converting cryptocurrencies into fiat currency or goods/services for use. Using without conversion is referred to as on-ramp.
