[NEWS] JPYC collaborates with Mitsubishi UFJ Trust and Banking Corporation and Progma to begin joint discussions on issuing "trust-type JPYC"

JPYC Corporation, which issues the Japanese yen stablecoin "JPYC," announced on the 28th that it has begun joint discussions with Mitsubishi UFJ Trust and Banking Corporation and Progmat, Inc. to issue a stablecoin that complies with the revised Payment Services Act that came into effect in June this year.

In this initiative, they will consider issuing a trust-type JPYC based on the revised Payment Services Act, utilizing Progmat Coin, a stablecoin issuance and management platform operated by Progmat.

JPYC has already been issued on multiple public blockchains, including Ethereum (ETH) and Polygon (MATIC). Through this joint discussion, they aim to issue JPYC as one of the stablecoin brands using Progmat Coin.

Currently, JPYC is issued as a prepaid payment method under the Payment Services Act, and in principle, cash refunds are prohibited. However, with trust-type JPYC, which falls under electronic payment methods, cash refunds will be possible.

In addition, JPYC will obtain a license for electronic payment instruments under the revised Payment Services Act, and by collaborating with Progma, it will become an intermediary handling various Japanese yen stablecoins issued through the Progma Coin platform, enabling mutual exchange with domestic and overseas stablecoins. It will create an environment in which domestic stablecoin users can smoothly use various domestic and foreign stablecoins.

Three types of stablecoins envisaged by the revised Payment Services Act

Currently, three types of Japanese yen stablecoins are envisaged: "bank type," "fund transfer type," and "trust type." JPYC is also considering issuing a fund transfer type stablecoin, but this joint review is premised on issuance as a trust type stablecoin with no remittance amount restrictions.

▶ Three types of stable coins (quoted from the announcement)

In addition, under the revised Payment Services Act, electronic payment instruments traders who handle overseas stable coins issued by overseas businesses as intermediaries are required to protect their customers from the risk of bankruptcy of the overseas businesses by contributing and preserving from their own funds an amount of legal tender equivalent to the stable coins deposited by the customer.

However, it is possible to imagine an intermediary model in which stable coins are not deposited, such as when customers manage them themselves using a "self-custody wallet."

As a future plan, in order to issue stable coins in Japan, intermediaries will need to obtain a license for electronic payment instruments trading, which was newly established under the revised Payment Services Act. Taking into account the time it will take for JPC to obtain the license, we aim to issue a trust-type JPYC by around summer 2024.

Reference:Announcement
Image: Quoted from the announcement

Related articles

The next outlook for stablecoin JPYC | Interview with JPYC Corporation, Okabe Noritaka

SBI partners with US Circle to handle stablecoin USDC

Mitsubishi UFJ Trust to issue stablecoin "XJPY" for cryptocurrency exchanges