Japan officially launched its first yen-pegged stablecoin, JPYC, on October 27, 2025. JPYC Inc. is the startup behind it, and they have also rolled out a issuance and redemption platform, called JPYC EX, according to local media.
JPYC is meant to maintain a 1:1 peg with the Japanese yen, backed by deposits and Japanese Government Bonds (JGBs), and fully redeemable. It will operate across multiple chains, including Ethereum, Polygon, and Avalanche. At launch, the team says no transaction fees will be charged, preferring to generate income via interest earned on the reserve assets.
KYC via Japan’s ‘my number card’
To use the issuance or redemption features on JPYC EX, users must complete identity verification via Japan’s ‘My Number card’ the national identity system. The initial reserve mix is expected to be ~80% government bonds and or 20% bank deposits. JPYC’s leadership projects that returns from those reserves will sustainably fund operations and growth.
JPYC’s CEO, Noritaka Okabe, emphasized that JPYC is not just another crypto token, but rather a regulated electronic money instrument grounded in Japan’s legal framework. In earlier statements, he said demand may begin with institutions like hedge funds, family offices, before expanding to broader adoption. JPYC has also expressed ambition to become “Japan’s Circle”, a reference to Circle’s role behind USDC in the U.S. stablecoin ecosystem.
Japan cozy’s up to stablecoins
A Reuters report quoted Bank of Japan (BoJ) Deputy Governor Ryozo Himino saying “might emerge as a key player in the global payment system, partially replacing the role of bank deposits.” Previously, in 2023, Japan updated its laws to require stablecoin issuers to register under the Payment Services Act or Funds Settlement frameworks.
But will adoption grow in a country that is used to cash? How fast can JPYC integrate into retail, POS, e-commerce flows? And how much will major banks back it? these are just some of the questions waiting to be answered. A former BoJ executive, suggested it could take 2–3 years for a yen stablecoin to gain real traction.