JPC Inc. Launches Japan’s First Yen-Backed Stablecoin

JPC Inc., a Tokyo-based fintech company, has officially launched Japan’s first yen-denominated stablecoin, JPYC today. This launch follows the company's registration as a Fund Transfer Service Provider with Japan’s Financial Services Agency in August.

The company stated in a press release that the stablecoin maintains a 1:1 exchange rate with the Japanese yen. This allows users to issue, redeem, and transfer funds instantly through various blockchain networks, including Avalanche, Ethereum, and Polygon.

To ensure stability, the assets backing JPYC will consist of yen deposits and government bonds, which will collectively exceed 100% of the outstanding balance.

JPYC EX Platform Launch

JPC will also introduce JPYC EX, a dedicated platform designed for users to issue or redeem the stablecoin. This platform will require users to link their wallets and complete identity verification using Japan’s My Number card system.

Driving Digital Payment Adoption

The company's initiative aims to support Japan's accelerating transition toward digital payments. Government data indicates a significant rise in cashless payment adoption, which increased to 42.8% in 2024, a substantial jump from 13.2% in 2010. This trend reflects a rapid shift away from cash in a country historically known for its preference for physical currency.

Developer Integration and Business Adoption

JPC's open design will facilitate developers in integrating JPYC into their own systems through a free software development kit (SDK) available on GitHub. Several businesses, including Densan System, ASTERIA Corporation, HashPort, and double jump.tokyo, have already declared their intentions to incorporate the stablecoin for various functions such as payments, fund transfers, and accounting tools.

The company anticipates the stablecoin will find widespread application across diverse sectors. These include retail, e-commerce, SaaS, and creator payments, facilitated through platforms like Nudge Card and comilio.

Future Outlook and Infrastructure Development

JPC has set an ambitious goal to achieve an issuance balance of 10 trillion yen within the next three years. This objective is part of a broader effort to establish a new digital financial infrastructure within Japan.

Significance of the JPYC Launch

The introduction of JPYC represents a significant advancement in Japan's landscape of financial innovation. It strategically positions Japan as a key player in the evolving digital currency market across Asia, joining nations like China and South Korea that are actively exploring or permitting fiat-backed stablecoins.

According to the Bank for International Settlements, U.S. dollar-backed tokens currently dominate the global stablecoin market, accounting for over 99% of its total value.

The Bank of Japan has recently acknowledged the potential of stablecoins, noting that they "could partially replace bank deposits." This statement highlights the increasing regulatory attention on the role of stablecoins in the future of digital finance.