August 21, 2025
By Anjali Kochhar
Imagine paying, saving, and investing in a digital currency that carries the same trust as the Japanese yen. That vision is about to become reality as Tokyo-based startup JPYC secures regulatory approval to issue Japan’s first-ever yen-pegged stablecoin. The move marks a historic milestone for the nation’s financial sector and places Japan firmly on the global stage as a digital finance innovator.
JPYC announced that its upcoming stablecoin, also named “JPYC,” will maintain a 1:1 peg with the Japanese yen. Each token will be fully backed by domestic savings and Japanese government bonds (JGBs). This asset-backed model is designed to ensure transparency, security, and long-term stability, making it a potential cornerstone in Japan’s digital financial ecosystem.
The startup recently secured a license from Japan’s Financial Services Agency (FSA) to operate as a funds-transfer service provider. This approval paves the way for JPYC’s official rollout in autumn 2025. According to CEO Noritaka Okabe, early adoption is expected from institutional investors, hedge funds, and family offices, but the company envisions scaling into a global “digital yen” for cross-border transactions.
Unlike traditional digital payment platforms, JPYC will not charge users transaction fees. Instead, its revenue model is based on earning interest from its government bond holdings. As token issuance increases, the bond portfolio will grow, creating a sustainable income stream. This approach mirrors successful models in the U.S. with USDT and USDC but carries a uniquely Japanese dimension.
Analysts suggest that JPYC could reshape demand patterns in Japan’s bond market, as institutions acquire JGBs to back the stablecoin. This could influence yields and liquidity in one of the world’s most significant government debt markets. The launch also comes at a time when the global regulatory landscape is diverging. While the U.S. is pushing forward with clear stablecoin rules, China remains restrictive, highlighting contrasting paths in digital finance.
The stablecoin will be issued on Ethereum-compatible networks such as Ethereum, Avalanche, and Polygon, ensuring interoperability and efficiency. JPYC has also committed to strict compliance with KYC, AML, and reserve audits to build trust among users and regulators.
As JPYC gears up for its debut in autumn 2025, global eyes will be watching closely. If successful, this stablecoin could redefine how the yen is used in both domestic and international transactions while setting a precedent for how nations can modernize finance without losing monetary sovereignty.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
