“Want to Be Japan’s Circle,” Says JPYC, Japan’s First Stablecoin Issuer
The post “Want to Be Japan’s Circle,” Says JPYC, Japan’s First Stablecoin Issuer appeared on BitcoinEthereumNews.com.
JPYC Inc., a Tokyo-based fintech, has secured regulatory approval to issue Japan’s first yen-denominated stablecoin and will launch a new issuance and redemption platform dubbed “JPYC X” in the coming weeks. The announcement marks a breakthrough for Japan’s digital asset industry as it adapts to new legislation designed to bring stablecoins under financial regulation. Japan’s First Licensed Yen Stablecoin In Tuesday afternoon’s press conference, the company said it received registration as a “funds transfer service provider” under Japan’s amended Payment Services Act, enabling it to issue the electronic money token directly backed by yen. JPYC will issue the token on Ethereum, Avalanche, and Polygon, using a non-custodial model where users hold their own assets. Identity verification will rely on Japan’s My Number card IC chip, offering stringent KYC and low costs. Authorities can block transactions flagged as potentially illicit through formal court or police requests. Japanese government bonds and trust deposits will primarily back the stablecoin, with authorities holding over 101% reserves. JPYC projects gross profits of around ¥5 billion ($34 million) annually for every ¥1 trillion ($6.8 billion) issued, primarily from bond yields. The company will initially allocate 80% of its reserves to government bonds and 20% to deposits, potentially shifting toward longer-term bonds later. Stablecoin on Barcode Payments The token will initially target domestic users, as KYC requires a My Number card, excluding overseas residents. Potential users include institutional investors, hedge funds, family offices, and sophisticated individuals. Possible applications include trade settlement, remittances, and DeFi integration. JPYC has already conducted demonstrations of barcode payments at convenience stores and expects POS system integration from next year. Developers can access free Node.js and Python SDKs to integrate payment functions into e-commerce sites with minimal coding, even through AI tools like ChatGPT. Yen-pegged Stablecoin Market Poised to Grow JPYC estimates the…
Filed under: News - @ August 19, 2025 10:28 am