Japan Launches World’s First Yen-Backed Stablecoin JPYC

Japan has taken a pioneering step in the digital currency space with the launch of the world's first yen-pegged stablecoin. JPYC, a Japanese startup, introduced the fully regulated stablecoin on October 27, 2025, backed by domestic savings and Japanese government bonds. The Financial Services Agency's approval marks a significant milestone as Japan becomes the first major economy to support a non-dollar stablecoin with official oversight.

The initiative is set to expand further as Japan's three largest banks prepare to launch their own joint yen stablecoin system through MUFG's Progmat platform. This corporate-focused solution will go live on October 31, offering businesses a new avenue for settlements. Unlike traditional models, JPYC will initially waive transaction fees, instead generating revenue from interest earned on its Japanese government bond holdings.

Bank of Japan Deputy Governor Ryozo Himino acknowledged the potential for stablecoins to disrupt traditional banking, suggesting they could partially replace conventional deposits in global payment systems. The MOVE challenges the current stablecoin dominance of dollar-pegged alternatives, which account for 99% of the $286 billion market.