Tokyo-based fintech company JPYC has just made Japanese currency history. On Monday, it launched JPYC – the first stablecoin pegged to the yen in a 1:1 ratio, backed by bank deposits and government bonds. And no, this is not another experiment, as seven companies have already expressed interest in implementing the new token into their services.
Late to the party, but classy
Japan is entering the stablecoin market at a time when the global sector has already exceeded the capitalization of USD 308 billion, dominated by USD giants such as USDT and USDC. Circle even managed to launch USDC in Japan on March 26. Does JPYC have a chance in this league? President Noriyoshi Okabe has no doubts – he called the launch “an important milestone in the history of the Japanese currency.”
JPYC – a real platform
JPYC is not just a token. The company has launched a dedicated JPYC EX platform for stablecoin issuance and redemption, operating in accordance with the strict regulations of the Act on Prevention of Transfer of Criminal Proceeds. Users can deposit yen via bank transfer, receive the stablecoin on their registered wallet, and redeem it back for yen. A simple mechanism, but the devil is in the regulations – and here the Japanese play by the rules.
Ambitions? Reaching an issuance balance of 10 trillion yen in three years and creating a new social infrastructure based on stablecoins. A bold assumption, but considering the competition, the stablecoin in question will have to hurry.
The fight for the Japanese stablecoin market is just beginning
JPYC won’t be alone for long. Monex Group announced plans in August to launch its own JPY-pegged stablecoin. Little? Three banking giants – Mitsubishi UFJ, Sumitomo Mitsui and Mizuho – plan to jointly issue yen-stablecoin on the Progmat platform owned by MUFG.
And for dessert: Japan’s Financial Services Agency is preparing a review of regulations that could allow banks to acquire and hold cryptocurrencies such as Bitcoin for investment purposes. Japan is coming to life in the world of digital currencies. Taking into account the technological development of the Land of the Rising Sun, increasing integration with the world of cryptocurrencies was only a matter of time.
