💴 What if you could send Japanese yen anywhere in the world in seconds, 24/7, for almost nothing?
That's exactly what JPYC — Japan's first legally compliant yen-backed stablecoin — promises. Launched just three months ago, it has already crossed ¥1 billion (about $6.5 million) in cumulative issuance and 13,000 registered accounts. And this is only the beginning: Japan's three mega-banks are preparing to launch their own stablecoin, potentially reshaping how the world's third-largest economy moves money.
What Is JPYC and Why Does It Matter?
JPYC is a digital token pegged 1:1 to the Japanese yen. Unlike volatile cryptocurrencies such as Bitcoin or Ethereum, each JPYC is always worth exactly one yen, backed by deposits and Japanese government bonds held in trust accounts. It was officially launched on October 27, 2025, by JPYC Inc., a fintech startup that became Japan's first registered money transfer operator authorized to issue yen-denominated stablecoins under the Payment Services Act.
What makes JPYC historically significant is its regulatory status. Japan amended its Payment Services Act in 2023, creating a legal framework for stablecoins classified as "electronic payment instruments." JPYC became the first product issued under this framework — a milestone that JPYC CEO Noritaka Okabe described as "a major turning point in Japan's monetary history."
The token operates on three major blockchains: Ethereum, Polygon, and Avalanche. Users can issue and redeem JPYC through the official platform JPYC EX, with identity verification conducted via Japan's My Number Card digital authentication system (JPKI). There are no fees for issuance or redemption, with users only paying minimal blockchain gas fees.
From Zero to ¥1 Billion in Three Months
JPYC's growth trajectory has been remarkably steep:
- Day 1 (Oct 27, 2025): ¥15 million issued in the first 3 hours
- Day 7: 6,000 JPYC EX accounts opened
- Day 18 (Nov 13): Cumulative issuance passes ¥200 million; holders surge to 31,000
- Day 50 (Dec 15): 10,000 accounts; ¥500 million in cumulative issuance
- Day 99 (Feb 2, 2026): 13,000 accounts; ¥1 billion in cumulative issuance
A major catalyst was the "1 Billion Yen JPYC Giveaway Campaign" by HashPort, a Web3 infrastructure company. The campaign distributed 200 yen worth of JPYC to each participant on the Polygon chain, causing a 6.6x increase in holders within a single day. Approximately 98% of all JPYC transactions currently occur on Polygon, reflecting the maturity of that chain's DeFi ecosystem.
How JPYC Is Already Being Used
While still in its early stages, JPYC has established several real-world use cases:
- Credit card payments: Nudge, a fintech credit card, accepts JPYC for bill repayment, effectively enabling JPYC spending at over 150 million Visa merchant locations worldwide.
- Retail payment plans: A partnership with Densan System aims to bring JPYC QR code payments to over 65,000 convenience stores and drugstores across Japan.
- DeFi lending: Paotec Lab has launched a JPYC lending market on the Morpho protocol, where holders can earn interest by lending their JPYC.
- Enterprise tools: Asteria's "JPYC Gateway" (beta launched January 2026) provides businesses with a web interface for managing JPYC transactions, including key management, gas fee handling, and accounting integration.
- LINE integration: JPYC has signed a basic agreement with LINE NEXT (under LY Corporation) to integrate JPYC into LINE's wallet features, potentially bringing stablecoin functionality to Japan's most-used messaging app.
The CEO has expressed confidence that issuance could scale rapidly, noting that demand from DeFi participants and international hedge funds who acquire JPYC through secondary markets creates a natural growth flywheel.
The Bigger Picture: Japan's Stablecoin Landscape in 2026
JPYC is not operating in isolation. Japan's stablecoin ecosystem is rapidly expanding:
Mega-bank stablecoin initiative: In November 2025, Japan's three largest banks — MUFG, Mizuho, and SMBC — announced a joint stablecoin pilot backed by the Financial Services Agency (FSA). Using Progmat Coin, a trust-based stablecoin platform developed by a subsidiary of Mitsubishi UFJ Trust, this initiative aims to issue trust-type stablecoins for corporate cross-border settlements. The pilot focuses initially on Mitsubishi Corporation's global payment operations and could expand to over 300,000 corporate clients across the three banks. Unlike JPYC's ¥1 million per-transaction limit (as a Type 2 money transfer operator), trust-type stablecoins face no such cap, making them suitable for large enterprise transactions.
Japan Post Bank: Exploring tokenized deposits using Decurret DCP's platform, with a target of fiscal year 2026 for deployment.
Japan Open Chain: A consortium including Aozora Bank, Orix Bank, and Shikoku Bank developing stablecoins for international remittance and supply chain payments.
Global context: The worldwide stablecoin market has exceeded $250 billion, dominated by USDT (~$140 billion) and USDC (~$61 billion). The U.S. GENIUS Act, signed into law in July 2025, provided a regulatory framework that accelerated institutional adoption globally. Hong Kong is preparing to issue its first stablecoin licenses in March 2026.
Japan's regulatory approach is notable for being structured ahead of the market. The 2023 Payment Services Act amendment created clear categories for stablecoins before any were actually issued — a contrast to many other jurisdictions where regulation has scrambled to keep pace with innovation.
Challenges and Risks
Despite the momentum, significant challenges remain:
- Transaction limits: JPYC currently operates under a Type 2 money transfer license, capping individual issuance at ¥1 million per business day. JPYC Inc. is pursuing a Type 1 license to remove this restriction.
- Limited use cases: Direct JPYC payment options are still sparse. Most practical utility currently comes through indirect methods like the Nudge card or DeFi participation.
- Competition ahead: When mega-bank stablecoins launch (expected 2026), they will bring enormous institutional credibility and customer bases. JPYC will need to differentiate in areas like individual retail use, DeFi integration, and speed of innovation.
- Security concerns: The broader crypto ecosystem continues to face security challenges. The 2024 DMM Bitcoin hack (¥48.2 billion) delayed Progmat's stablecoin development after it was revealed that the wallet provider involved was also part of Progmat's system development.
- Fraud risks: CEO Okabe has repeatedly warned about scam accounts impersonating him on social media as the market grows.
JPYC's Ambitious Roadmap
JPYC Inc. has outlined an ambitious three-year plan targeting ¥10 trillion in outstanding issuance — a massive leap from the current ¥1 billion milestone. The company is also pursuing an "electronic payment instruments exchange business" license that would enable direct JPYC-USDC conversion, and has expressed intentions to eventually pursue an IPO.
The integration with Circle's StableFX protocol — an on-chain foreign exchange infrastructure enabling real-time multi-currency conversions — is expected to launch in 2026. This would position JPYC as the yen-denominated node in a global stablecoin settlement network.
What This Means for the Future of Money in Japan
The ¥1 billion milestone may be modest in absolute terms, but its significance lies in what it represents: the first tangible proof that a legally compliant, yen-backed digital currency can gain traction in one of the world's most cash-loving societies.
Japan has long been known for its reliance on physical cash. The launch and rapid adoption of JPYC signals a potential inflection point — not just for how Japanese people transact, but for how the yen itself operates in a global digital economy.
In Japan, the conversation around stablecoins is evolving from theoretical speculation to practical reality. But how is your country approaching digital currencies and stablecoins? Have you used any stablecoin in daily life, or does the concept still feel abstract? We'd love to hear how digital money is shaping financial life in your part of the world.
References
- https://www.neweconomy.jp/posts/543917
- https://jp.beincrypto.com/stablecoin-jpyc-exchange-reaches-10000-accounts/
- https://www.coinspeaker.com/jp/jpyc-stablecoin-surpasses-200-million-issuance/
- https://diamond.jp/crypto/market/jpyc/
- https://toyokeizai.net/articles/-/926475
- https://ja.wikipedia.org/wiki/JPYC
Reactions in Japan
I tried issuing JPYC, and isn't it amazing that identity verification is done just by scanning your My Number Card? It's way faster than opening a bank account.
Congrats on passing ¥1 billion. But honestly, the ¥10 trillion target in 3 years... that's a 10,000x increase. I don't really see the basis for that.
As someone sending money to family abroad, SWIFT fees feel ridiculous. If JPYC really does it in 70 seconds for less than ¥1, that's a revolution.
For us DeFi users, having a yen-denominated stablecoin is genuinely exciting. Tax accounting is so much simpler compared to when we only had USDC.
Once mega-banks get serious, won't startups like JPYC struggle? With a combined 300,000+ corporate clients across three banks, can JPYC compete?
Tried repaying with JPYC on Nudge card. Shopping normally at Visa stores and only the repayment being in JPYC is such a surreal experience. Feels futuristic.
Here we go again with Web3 number games. ¥1 billion sounds impressive, but PayPay's annual transaction volume exceeds ¥16 trillion. That's five orders of magnitude different.
Credit where it's due — Japan's FSA setting up regulations ahead of the market is genuinely impressive. Having a framework before the US is rare, and it's good to see Japan being proactive for once.
The fact that you still have to deal with wallets and gas fees means it's impossible for regular people. I can't see a future where my mom uses MetaMask.
DeFi yields on Polygon are pretty decent, so I put about ¥50,000 into JPYC lending. Better than leaving it in a bank.
If the LINE integration actually happens, it could spread rapidly. The impact of JPYC getting on a platform with 80 million users would be huge.
I'm a freelancer working with overseas clients. If I could receive invoice payments through JPYC→USDC conversion, it would solve a lot of exchange fee problems.
The fake accounts impersonating CEO Okabe are proof that JPYC is gaining recognition, but it's scary. Stablecoin scams are easy traps for beginners.
The ¥1 million daily issuance cap is a real bottleneck. It's nowhere near enough for corporate use. Without a Type 1 license, business applications are limited.
Honestly, I thought 'it's just another crypto variant.' But learning it's FSA-approved and backed by over 100% in deposits and government bonds changed my mind.
So the stablecoin business model is to invest deposited yen in government bonds and profit from interest, right? With Japan's rates rising, that's a tailwind for JPYC Inc.
In Korea, there's discussion about a won-based stablecoin too, but it's stuck because regulations aren't settled. Honestly envious that Japan set up the framework first and launched JPYC.
I'm a US-based freelancer working with Japanese companies. If there's a yen-denominated stablecoin for instant transfers, I can say goodbye to waiting 3-5 business days for wire transfers.
I work at a Danish fintech. What's interesting about JPYC is its non-custodial model. Not holding user assets significantly reduces regulatory compliance costs.
From Taiwan. Japan's stablecoin regulation is well-structured, but ¥1 billion is still tiny compared to USDC's daily volume. Whether this market truly takes off remains to be seen.
In Brazil, more people are using USDT daily as a hedge against hyperinflation. I think the reason stablecoins don't click for Japanese people is that the yen is inherently stable.
I'm an Australian crypto trader. A yen-denominated DeFi liquidity pool is interesting. If an AUD/JPY on-chain trading pair becomes available, I'd definitely use it.
In India, UPI is so convenient there's barely any room for stablecoins. I suspect Japan is similar — with PayPay and Suica, the incentive for ordinary consumers to switch to JPYC seems weak.
Sweden is nearly cashless, but the central bank's e-Krona has slowed private stablecoin development. Japan's 'private sector first' approach is an interesting experiment.
I'm a French banker. Under EU's MiCA regulation, stablecoin issuance has strict reserve requirements. Japan's framework looks more startup-friendly in comparison.
From a Dubai blockchain company. We're watching the JPYC-StableFX integration closely. If instant yen-dollar-dirham conversion becomes possible, investing from the Middle East into Japan gets much smoother.
Honestly, it takes courage to trust blockchain finance after the DMM Bitcoin hack. I understand JPYC holds assets in trust, but hacking risk never goes to zero.
From a Russian perspective, stablecoins are a lifeline for sanctioned countries. A regulated one like JPYC won't work for sanctions evasion, but it has huge potential for legitimate cross-border transactions.
I'm a DeFi protocol developer in Singapore. The 98% transaction share on Polygon is fascinating. It shows that low gas fees are key to stablecoin adoption.
I'm a technical trainee in the Philippines receiving salary from a Japanese company. Right now, remittance fees are high. If I could send JPYC directly to my family in the Philippines, it would really help.
I'm a German financial researcher. Three mega-banks entering the same market as a startup is a fascinating dynamic. Usually banks lead and fintechs fill gaps, but in Japan it's reversed.