Catenaa, Friday, October 31, 2025-Japan has introduced the world’s first stablecoin pegged to the yen, marking a key step toward integrating blockchain technology into everyday finance.
Tokyo-based startup JPYC will issue a fully convertible yen-backed stablecoin, supported by domestic bank deposits and Japanese government bonds.
The company plans to waive transaction fees at launch, earning revenue from interest on its bond holdings. The rollout comes as policymakers and investors assess the role of digital money in mainstream financial systems.
Dollar-pegged stablecoins currently dominate global markets, representing over 99% of circulating supply. A yen-based option could diversify liquidity in Asia and enable faster, lower-cost settlements for local firms.
Japan has prepared for this move since 2023 by setting regulatory rules for stablecoin issuance under domestic oversight. The country’s three megabanks, Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho, are also exploring yen and dollar stablecoins, potentially accelerating mainstream adoption.
Cashless payments in Japan rose to 42.8% of transactions in 2024, up from 13.2% in 2010, signaling readiness for digital tokens. Regulators remain cautious, emphasizing secure asset backing, redemption rights, and segregation of reserves to prevent funds from bypassing the banking system.
JPYC’s approach uses domestic deposits and bonds, aiming to combine regulation with low transaction costs.
The launch comes amid regional competition, with South Korea permitting won-based stablecoins and Hong Kong expanding regulated crypto products.
Analysts suggest a yen-pegged stablecoin could reduce dependence on dollar-denominated tokens, improve settlement efficiency, and provide a native on-chain asset for Japanese corporates.
