Japan has launched its first fully yen-backed stablecoin, developed by local startup JPYC. The company plans to release approximately $66 billion worth of tokens over the next three years.
According to Reuters, the JPYC stablecoin operates on well-known blockchain platforms such as Avalanche, Ethereum, and Polygon. Its value is fully backed by Japanese government bonds and deposits held in the national currency. To attract users, JPYC announced that it will charge no transaction fees during the initial phase and aims for broader adoption overseas.
For a country like Japan, where traditional payment methods are still preferred, the introduction of a yen-backed stablecoin is considered a strategically significant step. However, some experts interviewed by Reuters believe that the stablecoin is unlikely to achieve the rapid adoption seen with dollar-pegged tokens.
Currently, the global stablecoin market has a total capitalization of over $300 billion, dominated by dollar-pegged tokens. For example, Tether’s USDT holds $183 billion, while Circle’s USDC has $76 billion in market capitalization. Japan’s new stablecoin could offer an alternative to this dominance and has the potential to shape the future of digital payments in Asia.
