Japan’s First Yen-Backed Stablecoin Launches With 0% Fees

Japanese startup JPYC has launched the first stablecoin pegged to the yen, backed by domestic savings and Japanese government ￰0￱ Is The First Yen-Backed Stablecoin In The World JPYC announced on Monday the launch of its yen-backed stablecoin , also called “JPYC.” A stablecoin is a cryptocurrency pegged to a fiat currency, and at present, the sector is heavily dominated by tokens tied to the US Dollar, with USDT and USDC alone accounting for the majority of the ￰1￱ is now also dipping into the space with this new ￰2￱ to JPYC, the token will be backed 1:1 by domestic deposits and Japanese government bonds (JGBs). Users can buy or sell the asset through JPYC EX, the Japanese startup’s official ￰3￱ company is offering zero fee on issuance and redemption for now, instead turning to the interest from the JGBs as a source of ￰4￱ token is initially becoming available on Ethereum, Avalanche, and Polygon, with support for additional blockchains ￰5￱ to Reuters , JPY is aiming to issue 10 trillion yen worth of the stablecoin over the next three ￰6￱ the current rate, this target is equivalent to about $65.5 billion.

USDC, the second-largest fiat-tied token in the sector, has a market cap of about $76.3 billion right now. Thus, if JPYC meets its ambitious target, it could potentially rival the USD-ruled stablecoin ￰7￱ JPYC launch isn’t the only stable-related development that has occurred in Japan ￰8￱ reported by Bitcoinist, three Japanese megabanks are planning to issue a yen-backed token by the end of ￰9￱ banks in question are Mitsubishi UFJ Financial Group (MUFG) Bank, Sumitomo Mitsui Banking Corp., and Mizuho Bank. Together, they serve over 300,000 ￰10￱ interest in cryptocurrencies has been rising in the East Asian country recently as the government is considering a regulatory rule change that would allow banks to hold Bitcoin and other digital assets for investment purposes, and register themselves as “crypto exchange operators,” becoming able to offer trading services to ￰11￱ Japan has been moving in a crypto-positive direction, China has remained cautious, offering impediments to stablecoin plans in Hong Kong, according to Financial ￰12￱ Chinese city launched its stablecoin legislation earlier in the year and received enquiries from multiple tech giants for an issuer ￰13￱ regulators, however, have urged the companies to halt their plans, raising concerns about the growth of currencies controlled by the private sector.

Globally, digital assets pegged to fiat currencies have continued to enjoy capital inflows recently despite Bitcoin and altcoins facing ￰14￱ the chart shared by institutional DeFi solutions provider Sentora shows, the sector has seen its market cap break a record of $308 ￰15￱ Price At the time of writing, Bitcoin is trading around $115,200, up nearly 4% over the last week.