JPYC launches Japan’s first yen-backed stablecoin “JPYC” following official registration as a funds transfer service provider.

On October 27, 2025, JPYC Inc. officially launched JPYC, Japan’s first yen-denominated stablecoin.

The company had completed registration in August 2025 as a funds transfer service provider under Article 37 of the Payment Services Act (Registration No. Kanto Local Finance Bureau 00099).

This marks a major transition from its previously offered prepaid token, JPYC Prepaid, to a fully regulated yen-backed stablecoin.

※1 JPYC is not classified as a “crypto asset”, but as an “electronic payment instrument” under Japan’s Payment Services Act.

Legal Framework and the Vision for an “Open Yen Economy”

Since 2021, JPYC has issued yen-based tokens as a form of prepaid payment instrument. However, the 2023 amendment to the Payment Services Act established a new legal framework allowing the issuance of electronic payment instrument-type stablecoins.

Following this change, JPYC obtained its funds transfer license and has now realized the issuance of a legally compliant yen-backed stablecoin under Japan’s new regulatory regime.

While U.S. dollar-pegged stablecoins continue to dominate the global market, yen-denominated tokens are expected to have significant potential for applications in cross-border remittances, corporate settlements, and retail payments within Japan.

JPYC CEO Noritaka Okabe commented:

“We believe this marks a major turning point in the history of Japan’s currency. Expanding JPYC as an open financial infrastructure accessible to everyone is the first step toward building a digital economy powered by the yen.”

The official platform for the issuance and redemption of JPYC, JPYC EX, is designed as a non-custodial system in which users retain full control over their own wallets.

Through a simple process, users can transfer Japanese yen via bank transfer and instantly receive JPYC tokens in their designated wallets across multiple blockchains, including Ethereum, Polygon, and Avalanche.

The name “EX” stands for Exchange, reflecting the platform’s broader vision to eventually support multi-currency swaps and cross-border remittances in the future.

Secure, Fully-Backed Yen Settlement Infrastructure

Each JPYC token is pegged 1:1 to the Japanese yen and fully backed by bank deposits and Japanese government bonds, ensuring more than 100% collateralization.
Funds are managed separately through trust and custodial arrangements to maintain transparency and safeguard user assets.

To meet regulatory and compliance standards, JPYC EX incorporates a transaction monitoring system with fraud detection, supporting AML/CFT (anti–money laundering and counter-terrorism financing) measures.
Identity verification utilizes Japan’s My Number (JPKI) system for official digital identification.

Service Launch and Ecosystem Expansion

JPYC EX officially launched at 1:00 p.m. on October 27, 2025.
Initially, the service targets users familiar with Web3 technologies, with plans for a gradual expansion to the general public.

For developers, the company has released the JPYC SDK on GitHub, offering tools for balance inquiries, wallet integration, and on-chain transactions, enabling easy integration with existing services.

Under the current regulatory framework, issuance and redemption are capped at 1 million yen per user per day, but JPYC aims to acquire a Type I Funds Transfer License to enable large-scale transactions.
The company is also conducting POS integration trials, paving the way for real-world retail payments using JPYC in the near future.

At a press conference held on the same day, JPYC CEO Noritaka Okabe emphasized that “JPYC is a project to redefine Japan’s financial infrastructure.”

Okabe pointed out that the global stablecoin market has reached approximately ¥48–49 trillion, with over 99% denominated in U.S. dollars. JPYC seeks to challenge this imbalance by positioning the Japanese yen as a core currency in the global digital economy.

Design Philosophy and Business Model

The defining feature of JPYC lies in its non-custodial architecture. The company does not hold customer assets—each issued JPYC token is sent directly to the user’s own wallet. For the time being, issuance, redemption, and transfer fees are waived, with interest income from reserve assets serving as the platform’s main source of revenue.

The reserve assets consist of a combination of short-term government bonds and bank deposits, with a long-term target composition of 80% government bonds and 20% deposits.
Assuming an interest rate of around 1%, the company projects that when the total issuance reaches ¥10 trillion—a milestone envisioned within three years—annual revenue could reach ¥100 billion, forming the foundation of what Okabe described as a “zero-fee digital yen.”

Currently, JPYC operates under a Type II Funds Transfer License, which limits issuance and redemption to ¥1 million per user per day. However, wallet-to-wallet transfers and holdings face no such restrictions, allowing for high-value transactions exceeding ¥1 million. The company is also exploring upgrading to a Type I license to further relax these limitations.

Expanding Use Cases in Japan and Beyond

JPYC has already begun forming partnerships with multiple companies to expand real-world use cases.

• Densan System is exploring the use of JPYC within its nationwide payment network spanning over 65,000 locations.
• Asteria is developing integration features for its ASTERIA Warp enterprise automation platform.
• HashPort plans to add JPYC support to its HashPort Wallet, while
• Nudge is introducing a system that allows credit card payments via JPYC for its Nudge Card users.

Additionally, the company revealed ongoing initiatives including POS system integration, the promotion of developer use of the JPYC SDK, and connectivity with accounting and tax SaaS platforms. Partnerships with payment service providers (PSPs) are also underway to support merchant adoption across a wide range of retail and enterprise environments.

Together, these efforts underscore JPYC’s broader ambition to establish the yen as a digital-native, globally interoperable currency, bridging traditional finance and the Web3 ecosystem.

During the press conference, JPYC Inc. announced its intention to pursue international expansion by collaborating with regulatory authorities in each country to enable local currency exchange with JPYC.

The company also expressed its ambition to issue foreign currency–denominated stablecoins from Japan in the future, stating its goal of building a multi-currency, interconnected economic network with the yen as its central hub.

Coexistence with Bank-Issued Digital Money

CEO Noritaka Okabe also addressed the relationship between JPYC and bank-type digital money, noting that while trust-based bank models offer stability and regulatory assurance, they come with operational constraints.

“Our strength lies in flexibility,” Okabe said. “While banks provide reassurance, JPYC aims to complement them by enabling new fields such as AI-driven agents and cross-border payments.”

This positioning underscores JPYC’s strategy of coexistence and complementarity rather than competition, framing its stablecoin as part of Japan’s broader financial innovation ecosystem.

Risk Management and Regulatory Outlook

In response to questions about depegging risks (where 1 JPYC might deviate from 1 JPY), the company explained that it mitigates such risks through:

• Diversified banking partners,
• A reserve portfolio centered on short-term Japanese government bonds, and
• User protection mechanisms via trust and escrow arrangements,
  ensuring that customer assets remain safeguarded even in the event of issuer insolvency.

JPYC also highlighted new security enhancements, including an address-blocking system for accounts associated with illicit activity and cross-industry information sharing to strengthen AML/CFT (anti–money laundering / counter-terrorism financing) compliance.

On the regulatory front, Okabe expressed optimism about the evolution of Japan’s accounting standards, noting that if electronic payment instruments were formally recognized as cash equivalents, it could unlock new use cases such as salary payments and corporate disbursements.

Toward a Japan-Born Digital Monetary Infrastructure

By combining the trust and stability of the yen with blockchain transparency and programmability, JPYC has taken a major step toward establishing a Japan-origin digital monetary infrastructure.
As the global stablecoin market continues to expand, attention is now focused on whether JPYC can serve as the key issuer driving the real-world adoption of a “digital yen.”

Reference Links:JPYC Official Website , JPYC Inc. Corporate Page , JPYC SDK on GitHub
Image: Courtesy of JPYC press release

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