TOKYO - JPYC, a fintech company, said it will begin issuing a yen-pegged stablecoin as early as September. Stablecoins are a form of digital money designed to maintain a stable value by being backed by assets such as legal tender.
The announcement follows moves overseas: in July, the United States enacted legislation to promote stablecoin adoption, while China is reportedly considering authorizing a renminbi-backed version. JPYC argues a yen stablecoin could “deliver the Japanese yen to hundreds of millions of people worldwide,” expanding the currency’s reach.
In an interview, JPYC representative director Okabe described the product as a blockchain-issued electronic payment instrument in which 1 JPYC is intended to equal 1 yen at all times. Although still unfamiliar to many consumers, the global market is already substantial, with outstanding issuance exceeding 40 trillion yen and daily turnover around 20 trillion yen.
Stablecoin development has proceeded more slowly in Japan than in the United States because domestic issuers have prioritized building a legal and licensing framework before launching, according to Okabe. With the regime now in place under the Payment Services Act, issuance is set to begin from September.
Okabe said the most immediate benefits will be cheaper, simpler cross-border remittances and payments. Even for those who rarely travel overseas, lower merchant fees could flow through to consumers if retailers adopt stablecoin settlement, potentially reducing costs compared with card payments. Unlike prepaid e-money limited to participating merchants, a yen stablecoin can be transferred person-to-person and used across a wide range of services.
On investment use cases, Okabe noted that lower international transfer costs make strategies such as carry trades easier to execute on blockchain platforms where various tokenized assets are available. In such markets, stablecoins often serve as the entry and exit currency.
Concerns remain about risk, given past failures. In 2022, Terra—a dollar-linked stablecoin that once ranked third by market value—collapsed, falling about 90 percent in five days. Okabe stressed that JPYC differs in being strictly regulated as an electronic payment instrument with fully backed reserves. Under the rules, issuers must hold more than 100 percent—specifically 101 percent—of backing assets with a designated custodian so that user funds are protected even if the issuer fails.
Security is a constant priority, Okabe said, because digital systems can be attacked from abroad. JPYC is working closely with government bodies and industry groups handling crypto assets to share information on attack methods and strengthen defenses. The company maintains that uncompromising security and transparent backing will be key to building trust as Japan’s first yen-pegged stablecoin rolls out.
Source: テレ東BIZ
