Japan Launches World’s First Yen-Pegged Stablecoin to Boost Digital Payments
Japan introduced the world’s first yen-pegged stablecoin on Monday, marking a milestone in the country’s cautious shift toward digital payments. The launch comes as many Japanese consumers still rely heavily on cash and credit cards for everyday transactions.
The new digital asset, called JPYC, is issued by Japanese startup JPYC Inc. and is fully backed by domestic savings and Japanese government bonds (JGBs). Each JPYC token is convertible one-to-one with the yen, offering a stable and regulated entry point into blockchain-based finance.
JPYC Targets ¥10 Trillion in Issuance
JPYC plans to issue up to 10 trillion yen ($66 billion) worth of stablecoins within three years, aiming for widespread domestic and international adoption. To encourage usage, the company will initially waive transaction fees, generating revenue instead from interest earned on its JGB holdings.
“We hope to spur innovation by giving startups access to low transaction and settlement costs,” said CEO Noritaka Okabe during a press briefing. He added that the company remains open to global partnerships and capital tie-ups to enhance cross-border interoperability.
Stablecoins Gain Momentum Globally
Stablecoins are blockchain-based digital tokens tied to fiat currencies, designed to provide fast and low-cost transactions. Their popularity has surged globally—particularly U.S. dollar–backed stablecoins, which now account for more than 99% of the global market, according to the Bank for International Settlements.
Support from U.S. President Donald Trump has also strengthened the stablecoin sector, boosting confidence in dollar-pegged assets. Meanwhile, Japan’s three megabanks are reportedly preparing to jointly issue their own stablecoins, signaling growing institutional interest in the space.
Regulation and Future Outlook
Experts say yen-backed stablecoins may take time to gain traction compared to dollar-based assets. Tomoyuki Shimoda, a former Bank of Japan official and now an academic at Rikkyo University, noted that adoption could take two to three years, unless major banks accelerate the rollout.
Regulators, however, remain cautious. BOJ Deputy Governor Ryozo Himino recently warned that stablecoins could “partially replace the role of bank deposits,” urging global regulators to adapt as digital currencies reshape payment systems.
Elsewhere in Asia, South Korea plans to introduce won-based stablecoins, while China is considering approving yuan-backed versions, reflecting a broader regional shift toward regulated digital money.
