Japan has debuted the world’s first yen-pegged stablecoin, supported by domestic deposits and Japanese government bonds (JGB).
Officially launched on 27 October 2025, the launch comes as a substantial move in Japan, where many consumers tend to prefer utilising traditional payment methods, such as cash and credit cards. The stablecoin, also called JPYC, has started to be issued by JPYC, a startup operating in the region, with it being fully convertible to the yen and backed by domestic savings and JGBs.
The company intends to issue USD 66 billion worth of JPYC over the next three years, as well as gave the digital assets used widely internationally. However, initially, JPYC does not aim to charge transaction fees, planning to encourage its usage. Instead, the company is set to earn money from interest on holding of JGBs. According to officials, the main goal of JPYC is to facilitate innovation by providing startups with access to low transaction and settlement fees. They added that scaling global interoperability would also benefit the company, with it being open to capital tie-ups.
Japan’s stablecoin market
As interest in stablecoins has been gaining interest at a global level, Japan’s three largest financial institutions are set to jointly issue the digital assets, according to reports from the beginning of October 2025. However, people familiar with the matter at hand stated that yen stablecoins will not have the same momentum as those backed by the USD, which, since President Donald Trump’s significant backing, have increased significantly and account for over 99% of global stablecoin supply.
Furthermore, the same sources mentioned that it was not yet certain if yen stablecoins will actually become widespread in Japan. If large financial institutions enter the market, it could accelerate the adoption of stablecoins, but this could take a minimum of three years. At the same time, regulators have also voiced concerns about the digital assets, saying that they could lead to the movement of funds outside regulated banking systems and potentially weaken the role of commercial banks in worldwide payment flows.
