Tokyo-based fintech firm JPYC has introduced Japan’s inaugural yen-backed stablecoin, accompanied by a platform for its issuance, amid an intensifying global competition for market share.
The JPYC stablecoin, tied to the Japanese yen, officially launched on Monday, with backing from bank deposits and government bonds, ensuring a 1:1 exchange rate with the national currency, as reported by the company last Friday.
During a press conference in Tokyo, JPYC President Noriyoshi Okabe described the launch as a “significant milestone in Japanese currency history,” noting that seven companies are interested in integrating the stablecoin, according to Business Insider Japan.
JPYC’s debut coincides with the global stablecoin landscape, which is largely dominated by dollar-pegged assets like USDT (USDT) and Circle’s (USDC), and has surged to a market cap exceeding $308 billion. US dollar stablecoins have gained traction in Japan, highlighted by Circle’s launch of USDC on March 26.
Launch of Stablecoin Platform
Alongside its stablecoin, the company has also rolled out JPYC EX, a specialized platform for the issuance and redemption of the token, which adheres to strict identity and transaction verification measures in compliance with the Act on Prevention of Transfer of Criminal Proceeds.
Users can deposit Japanese yen through bank transfers to receive JPYC in a registered wallet and can also withdraw yen to their accounts.
In the long term, JPYC aims to “achieve an issuance balance of 10 trillion yen over the next three years and undertake the challenge of forging a new social infrastructure through stablecoins.”
Emerging Competition in Japan’s Stablecoin Market
JPYC may not remain the sole player in the stablecoin space for long. Monex Group, a financial services company based in Tokyo, revealed in August its intentions to issue a stablecoin linked to the Japanese yen.
Related: Money giant Western Union to pilot stablecoin-powered transfers
Japan’s three largest banks, Mitsubishi UFJ Financial Group, Bank Sumitomo Mitsui Banking Corp, and Mizuho Bank, are also exploring joint issuance of a yen-pegged stablecoin via MUFG’s Progmat platform.
Simultaneously, Japan’s Financial Services Agency may be poised to assess regulations that would permit banks to acquire and hold cryptocurrencies like Bitcoin (BTC) for investment purposes.
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