Japan Launches Yen‑Backed Stablecoin JPYC

At launch, JPYC will support issuance on the Avalanche, Ethereum, and Polygon chains. This enables interoperability across major blockchain networks.

How JPYC Works — and Why It Matters

Stablecoins aim to bring the speed and programmability of digital assets without the wild swings of crypto volatility. By pegging each JPYC to one yen and holding reserves in cash or Japanese government bonds (JGBs), JPYC Inc ensures users can always redeem tokens for equivalent fiat value.

The JPYC EX platform handles issuance (when users convert yen into JPYC) and redemption (when they convert JPYC back into yen). Because JPYC lives on public blockchains like Ethereum and Avalanche, users and developers can integrate it with existing apps, wallets, and smart contracts. This gives JPYC the flexibility to plug into DeFi protocols, payment rails, and cross-border flows from day one.

Backing JPYC with real assets isn’t just theoretical — in the U.S., major stablecoins like USDC and USDT follow a similar model using deposits and U.S. Treasury instruments to maintain stability. Their combined market capitalization now surpasses $285 billion. JPYC’s launch puts Japan on the map with its own national variant.

More About Fiat-Backed Stablecoins

Stablecoins are emerging as a powerful tool to slow or even reverse the decline of the U.S. dollar’s global dominance. The U.S. did not adopt them out of love for crypto or technology. But, as a move of self-preservation and geopolitical strategy.

Global demand for Treasuries is shrinking as countries diversify away from the dollar. Yet, nearly all stablecoins—99.8%—are backed by USD. Over 150 billion dollars in U.S. debt is now held inside stablecoin reserves, giving the U.S. a new digital channel to export the dollar, integrate it across global payment networks, and create steady, organic demand for Treasuries.