Japan Launches First Regulated Yen-Backed Stablecoin JPYC on Ethereum, Targeting ¥10 Trillion Issuance

Tokyo, Japan – JPYC Inc. officially launched JPYC, Japan’s first fully regulated yen-backed stablecoin, on October 27, 2025. The digital asset is now operational on the Ethereum, Avalanche, and Polygon blockchains, marking a significant step for Japan into the global digital finance landscape. This move positions JPYC as a key player in the evolving stablecoin market, offering a regulated alternative to predominantly dollar-pegged tokens.

The stablecoin is designed to maintain a 1:1 peg with the Japanese yen and is fully backed by yen deposits and Japanese government bonds, ensuring transparency and stability. JPYC operates under Japan's revised Payment Services Act, with its dedicated platform, JPYC EX, facilitating secure issuance and redemption processes that adhere to strict KYC and anti-money laundering compliance. JPYC President Noritaka Okabe described the launch as a "major milestone in Japanese currency history."

The decision to build JPYC on Ethereum, alongside other public blockchains, highlights a growing trend in the digital asset space. As noted by financial analyst Thomas Lee on social media, "Japan 🇯🇵 launches first yen-backed stablecoin $JPYC and… …yup, it’s built on ethereum $ETH Anyone else noticing a pattern and consistency ?" This choice underscores Ethereum's role as a robust infrastructure for regulated financial instruments. The global stablecoin market, currently exceeding $300 billion, has been largely dominated by USD-pegged assets, making JPYC a crucial addition for yen-denominated digital transactions.

JPYC Inc. has set an ambitious goal to achieve an issuance balance of 10 trillion yen within three years, aiming to expand its reach both domestically and internationally. Several Japanese companies, including Densan System and Asteria, have already expressed interest in integrating JPYC into their services for retail payments and enterprise automation. The launch also sets the stage for potential competition, with major Japanese banks like Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho reportedly exploring their own yen-backed stablecoins.