Yen pegged stablecoin JPYC targets trillion-yen issuance in three years

Adam German
Aug 25
3 min read

On August 19^th, Fintech company JPYC, based in Tokyo’s Chiyoda ward, announced it will begin issuing its Japanese yen-linked stablecoin, “JPYC,” as early as September.

Built on blockchain technology, the digital currency is designed for instant, low-cost transfers and could reshape both domestic and international payment systems.

JPYC K.K. Representative Director Noritaka Okabe. Photo courtesy of PR Times.

At a press conference on August 19, CEO Noritaka Okabe highlighted the potential scale of stablecoins:

“They could ultimately surpass existing global networks like Visa, Mastercard, and even banks’ transfer systems.”

Okabe noted that in Q1 2025, global stablecoin transaction volumes already exceeded Visa’s settlement amounts.

Regulatory Approval and Structure

JPYC completed its registration as a licensed funds transfer service provider on August 18, clearing the final hurdle to launch. The company intends to begin operations “within weeks.”

The token will be backed by deposits and Japanese government bonds, maintaining a 1:1 peg with the yen. Individuals, corporations, and institutional investors will be able to purchase JPYC by depositing funds, which will then be transferred to their digital wallets. JPYC has set a target issuance of ¥1 trillion over three years.

Cross-Border Remittances

One of the main anticipated uses is international transfers. Traditional bank remittances often come with high costs and long processing times. For example, the Bank of Japan reports that between 2013 and 2019, average remittance fees on a $200 transfer via SWIFT-based bank networks were 17.5%.

By contrast, Okabe emphasized:

“With JPYC, transfers can be completed worldwide in seconds, starting from as little as ¥1, with blockchain fees often under a single yen.”

This could prove particularly useful for foreign students receiving family support or migrant workers sending money home.

Corporate Use Cases

Corporate adoption is also expected. In blockchain-related industries, payments via dollar-denominated stablecoins like Tether (USDT) and USD Coin (USDC) are already widespread.

For example, Tokyo-based CoinPost, organizer of the major international WebX crypto conference, receives nearly all overseas exhibitor payments in stablecoins. JPYC believes such cases will gradually expand to yen-denominated transactions.

Policy Milestone for Japan

For Japan’s Financial Services Agency (FSA), domestic stablecoin issuance marks a long-awaited achievement. The revised Payment Services Act, effective June 2023, established a clear legal framework distinguishing stablecoins from cryptocurrencies - making Japan a pioneer in regulation.

Still, it took over two years for the first issuance to materialize. An FSA official commented:

“It feels like we finally have one company stepping forward. We hope more will follow so Japan doesn’t fall behind global trends.”

The official noted potential applications in Japan’s strengths, such as overseas expansion of gaming and digital content.

Market Outlook

The global stablecoin market now exceeds $250 billion, dominated by USDT and USDC, which together account for more than $200 billion. Citi projects the market could reach up to $3.7 trillion by 2030. Based on this, JPYC estimates the yen-pegged segment could grow to ¥80 trillion.

Remaining Challenges

Despite the potential, hurdles remain. Currently, only one registered electronic payment service provider - SBI VC Trade - is licensed to handle stablecoins in Japan.

Monex Securities analyst Marin Matsushima warned:

“If JPYC lists on exchanges, it could be used for trading Bitcoin and other cryptocurrencies. But with so few licensed handlers, widespread use will be slow.”

Under the Payment Services Act, issuance of JPYC is capped at ¥1 million per transaction. Okabe suggested that easing this cap would encourage more firms to enter the market, boosting both issuance and fee revenues.