Japan Yen Stablecoin JPYC: Redefining the Future of Financial Infrastructure

On October 27, 2025, Japan’s first yen-pegged stablecoin, JPYC, was officially issued.

Combining the reliability of traditional bank transfers with the speed and transparency of blockchain technology, this “digital yen” marks a pivotal step in redefining Japan’s financial infrastructure.

Under Japan’s Payment Services Act, JPYC is categorized as an “electronic payment instrument,” meaning it is legally distinct from crypto assets (virtual currencies). In August 2025, JPYC Inc. was registered with Japan’s Financial Services Agency (FSA) as a Type II Funds Transfer Service Provider, paving the way for the official launch of the JPYC stablecoin on October 27.

Each JPYC is redeemable 1:1 with the Japanese yen. During issuance or redemption, users deposit or withdraw funds through JPYC EX, the company’s official platform, which then issues or burns JPYC tokens on the blockchain accordingly.

The value of JPYC is fully backed by reserves held in bank deposits and Japanese government bonds. One of its defining features is its ability to facilitate low-cost, real-time transfers 24 hours a day, 365 days a year, with no basic transaction fees.

The stablecoin currently operates on Ethereum, Avalanche, and Polygon, with support for additional blockchains planned in future updates.

JPYC also adopts a non-custodial model, allowing users to manage their holdings directly through their own wallets rather than relying on third-party custodians.

Upon its launch, more than 15 million JPYC were issued within the first four hours, underscoring strong market interest and confidence in Japan’s first yen-based stablecoin.

Currently, issuance is capped at 1 million yen per person per day in accordance with Type II Funds Transfer regulations. However, the company has indicated plans to pursue a Type I license in the future, which would lift these issuance limits and expand the scale of operations.

The debut of JPYC not only signals Japan’s progress in regulatory innovation but also reflects a broader ambition to integrate blockchain-based financial infrastructure into the nation’s payment ecosystem—positioning JPYC as a potential cornerstone in the evolution of digital finance.