Japan Breaks New Ground with Launch of First Yen-Denominated Stablecoin

Japan will debut the world’s first stablecoin pegged to the yen on Monday, a small but significant step in a market still dominated by cash and card ￰2￱ move aims to pull blockchain into everyday finance and test demand for a digital yen proxy. JPYC, a Tokyo startup, said it will issue a fully convertible yen stablecoin backed by domestic bank deposits and Japanese government bonds (JGBs). The company plans to waive transaction fees at launch to spur usage, and instead earn income from interest on its JGB ￰3￱ rollout comes as policymakers and investors revisit digital money’s role in mainstream ￰4￱ from the Trump administration in the US has revived interest in stablecoin use cases, while China is weighing approval for yuan-backed products, a sign of growing global momentum. 【 メンテナンスのお知らせ】 本日12:30〜13:00の間、 JPYC EXサービスページ（ ￰0￱ ） の公開準備に伴うメンテナンスを実施いたします。 メンテナンス終了後に、ぜひアクセスください。 新しいJPYC EXサービスページをお楽しみに！ #JPYC #JPYCEX #メンテナンス情報 — JPYC株式会社 (@jpyc_official) October 27, 2025 Dollar Tokens Still Dominate, But Japan’s Entry Could Mark A Turning Point For Regional Liquidity Dollar-pegged tokens still dominate the market, accounting for more than 99% of circulating supply, according to international central bank data.

A viable yen option could diversify liquidity in Asia and give local firms a way to settle faster and at lower cost than traditional ￰5￱ has been laying the ￰6￱ 2023, authorities set rules to allow issuance of stablecoins under domestic ￰7￱ country’s three megabanks, Mitsubishi UFJ Bank, Sumitomo Mitsui and Mizuho, are also preparing yen and dollar stablecoins , which could push digital assets into the mainstream for a population long accustomed to ￰8￱ UFJ, Sumitomo Mitsui, and Mizuho launch yen stablecoins to challenge USDT and USDC with 1T yen ($6.64B) over 3 years planned. #Japan #Stablecoin ￰1￱ — ￰9￱ (@cryptonews) October 17, 2025 Cashless Transactions Surged To 42.8% In 2024, Paving The Way For Stablecoin Adoption Households and merchants are gradually ￰10￱ figures show cashless payments rose to 42.8% in 2024 from 13.2% in 2010, a steady climb that sets the stage for a regulated digital token tied to the ￰11￱ are evaluating the broader ￰12￱ this month said Japan’s financial watchdog is considering allowing banks to purchase and hold digital assets such as Bitcoin for investment, with reforms that would align crypto risk management with stocks and government bonds, alongside additional stability ￰13￱ so, officials remain ￰14￱ have warned that poorly designed stablecoins could route funds outside the banking system and weaken commercial banks’ role in ￰15￱ assets, redemption rights, and segregation of reserves are likely to face close scrutiny as issuance ￰16￱ Stablecoin Could Reduce Dollar Reliance And Improve Domestic Settlement Efficiency JPYC’s model will test that ￰17￱ holding reserves in domestic savings and JGBs, and offering fee-free transfers initially, the issuer is betting that a tightly regulated structure and low costs can unlock real-world ￰18￱ launch also lands as regional rivals ￰19￱ Korea has pledged to allow won-based stablecoins, and Hong Kong is expanding regulated crypto products, raising the stakes for Japan to establish trusted yen liquidity ￰20￱ adoption builds, a yen stablecoin could give Japanese platforms a native settlement asset, reduce reliance on dollar tokens, and offer corporates a faster alternative for payments and ￰21￱ now, Japan is stepping in with a live market test, a regulated framework and a clear signal that digital money is entering the country’s financial mainstream.