JPYC is the first stablecoin pegged 1:1 to the Japanese Yen, issued by JPYC Inc. It operates under Japan's revised Payment Services Act as a fully regulated "Electronic Payment Instrument." Each JPYC token is designed to maintain a constant value equivalent to one Japanese Yen and is 100% backed by yen reserves held in a secure trust, ensuring full collateralization and stability. Initially launched as a prepaid instrument, JPYC transitioned to a fully licensed stablecoin model following new legislation. The stablecoin is available on multiple blockchains, including Ethereum, Polygon, and Astar, and is utilized across a growing ecosystem for applications in Decentralized Finance (DeFi), digital payments, cross-border remittances, and e-commerce.

Overview

JPYC's primary function is to serve as a stable, digital, and blockchain-native version of the Japanese Yen. It bridges the gap between traditional finance and the world of decentralized finance by offering the price stability of a fiat currency combined with the technological advantages of a cryptocurrency, such as programmability, transparency, and low-cost, near-instantaneous transfers. ^{[1] [2]}​

Legal Classification

Under Japanese law, JPYC is classified as an "Electronic Payment Instrument" (電子決済手段, denshi kessai shudan), a category specifically created for stablecoins under the revised Payment Services Act of June 2023. This classification distinguishes it from volatile crypto-assets (暗号資産, angō shisan) and mandates strict regulatory oversight, including requirements for issuer licensing and asset backing. ^[1]​

This represents a significant evolution from its initial legal status. Before the new framework, JPYC operated as a "Third-Party Prepaid Payment Instrument" (第三者型前払式支払手段, daisansha-gata maebarai-shiki shiharai shudan). In this form, it functioned similarly to a digital gift card or prepaid e-money, which could be used for purchasing goods and services but could not be directly redeemed for cash. The transition to an "Electronic Payment Instrument" was a critical step that enabled direct yen redemption and broadened its potential use cases in financial services. ^[2]​

Asset Backing and Stability

To guarantee its 1:1 peg with the Japanese Yen, every JPYC token in circulation is 100% backed by an equivalent amount of yen-denominated assets. These reserves consist of Japanese Yen held in bank deposits and Japanese government bonds. The assets are secured in a trust account managed under the oversight of the Kanto Local Finance Bureau. This full-collateralization model and the legal segregation of user funds ensure that the stablecoin is always redeemable at its face value and that holder assets are protected even in the event of the issuer's insolvency. ^{[3] [1]}​

Multi-Chain Availability

To maximize its utility and accessibility, JPYC is deployed on several major public blockchain networks. This multi-chain strategy allows users to leverage the unique advantages of different ecosystems, such as lower transaction fees, faster settlement times, or access to specific DeFi protocols. ^[2]​

History and Development

The evolution of JPYC is closely linked to the development of Japan's regulatory approach to digital assets. The issuing company, JPYC Inc., was founded in November 2019 by Noritaka Okabe with the vision of creating a stable and compliant digital yen. ^[2]​

Founding and Initial Operations (2019–2024)

JPYC Inc. began its stablecoin-related business in January 2021. At the time, Japan lacked a specific legal framework for stablecoins, so the company structured its product as a "third-party prepaid payment instrument" to operate within existing laws. Under this model, JPYC gained early traction in the domestic DeFi community. In April 2021, the company announced JPYC's integration with the Polygon network and the decentralized savings protocol PoolTogether, followed by a collaboration with the decentralized exchange SushiSwap in July 2021 to build a secondary market. To showcase its utility, the company launched a promotional campaign in August 2021 called the "JPYC One-Week Living Project," where participants tested its use for daily expenses. ^[4]​

By November 18, 2024, the total issuance of JPYC as a prepaid instrument had surpassed ¥3 billion. To clarify its legal status ahead of new regulations, the existing token was formally renamed "JPYC Prepaid" on November 27, 2024. ^[2]​

Transition to a Regulated Stablecoin (2025)

A pivotal moment for JPYC came with the enforcement of Japan's revised Payment Services Act on June 1, 2023. This legislation created a clear but stringent path for stablecoin issuance, mandating that issuers be licensed entities such as banks, trust companies, or funds transfer service providers. ^[5]​

In response, JPYC Inc. pursued the necessary licensing. On August 18, 2025, the company successfully registered as a Funds Transfer Service Provider with the Kanto Local Finance Bureau, a landmark achievement that authorized it to issue a fully redeemable stablecoin. Further cementing its position in the industry, the company became a Type 1 member of the Japan Crypto Asset Trading Association (JVCEA) on September 1, 2025. ^[2]​

On October 24, 2025, JPYC Inc. officially launched the new, fully regulated JPYC as an "Electronic Payment Instrument." The launch coincided with the release of "JPYC EX," a dedicated platform for users to purchase (issue) and redeem JPYC directly for Japanese Yen. This event marked JPYC's complete transition into Japan's first legally compliant, yen-pegged stablecoin. The launch was recognized by prominent figures in the industry, including Jeremy Allaire, CEO of Circle, which was an early investor in JPYC Inc. ^{[1] [5]}​

Regulatory Compliance

JPYC's operations are defined by its adherence to one of the world's most comprehensive stablecoin regulatory frameworks, providing a high degree of user protection and financial stability.

The Revised Payment Services Act

Japan's revised Payment Services Act, effective June 2023, established a pioneering regulatory regime for stablecoins. The key requirements under this act include:

1. Licensed Issuers: Only licensed institutions, specifically banks, trust companies, and registered funds transfer service providers, are permitted to issue stablecoins.
2. Asset Preservation: Issuers must guarantee the redemption of stablecoins at face value and are required to hold 100% of the backing assets securely, typically in a trust, to protect user funds from issuer insolvency.
3. AML/CFT Compliance: Issuers and distributors must implement robust Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) measures, including Know Your Customer (KYC) procedures. ^{[3] [5]}

JPYC Inc.'s Compliance Strategy

JPYC Inc. has meticulously aligned its business model with these regulations. By registering as a Funds Transfer Service Provider (資金移動業者, shikin idō gyōsha), the company fulfilled the primary requirement for becoming a legal stablecoin issuer, subjecting it to strict oversight by Japan's Financial Services Agency (FSA). ^[1]​

The company ensures the preservation of user assets by holding all corresponding yen reserves in a trust with the Kanto Local Finance Bureau. This legal structure segregates user funds from the company's operational assets, providing a high degree of protection for JPYC holders. The company's membership in the JVCEA further underscores its commitment to upholding industry best practices and regulatory standards. This transparent approach to compliance has been instrumental in building trust and encouraging adoption. ^[2]​

Technology and Mechanism

JPYC combines standard token protocols with a robust off-chain financial structure to ensure its functionality, stability, and security.

Issuance and Redemption

The primary gateway for acquiring and redeeming JPYC is the JPYC EX platform, which operates on a non-custodial basis, meaning users retain full control of their assets in their own wallets. ^[1]​

• Issuance (Purchase): A user initiates a purchase on JPYC EX and transfers Japanese Yen to JPYC Inc.'s designated bank account after completing a mandatory identity verification process, which can be done using Japan's official "My Number" card. Once the funds are received, JPYC Inc. mints an equivalent amount of JPYC tokens and sends them to the user's specified blockchain wallet. ^[3]
• Redemption: To redeem JPYC for yen, a user sends their JPYC tokens from their wallet to a designated redemption address. After the on-chain transaction is confirmed, JPYC Inc. burns the tokens (permanently removing them from circulation) and transfers the equivalent amount of Japanese Yen from its trust account to the user's verified bank account. ^[1]

This direct, fully-backed process ensures that the supply of JPYC in circulation always matches the amount of yen held in reserve.

Peg Stability Mechanism

The 1:1 peg between JPYC and the Japanese Yen is maintained through a simple yet effective mechanism based on full collateralization and arbitrage.

1. Full Collateralization: As every JPYC is backed by one Japanese Yen held in a secure trust, the token has an intrinsic value of ¥1. This model avoids the risks associated with under-collateralized or algorithmic stablecoins.
2. Arbitrage: The ability to issue and redeem JPYC at a fixed rate of ¥1 creates a natural market mechanism that stabilizes its price. If the price of JPYC on a secondary market were to drop below ¥1, traders could buy it cheaply and redeem it for ¥1 from JPYC Inc. to make a profit, with the buying pressure pushing the price back up. Conversely, if the price were to rise above ¥1, traders could purchase JPYC for ¥1 from the issuer and sell it on the open market, with the selling pressure pushing the price back down to the peg. ^[5]

Supported Blockchains

JPYC is available on several leading blockchain networks to cater to a wide range of applications and user preferences. This multi-chain approach enhances its utility across the decentralized web.

Blockchain Network	Description
Ethereum	The largest smart contract platform, offering access to the most extensive DeFi ecosystem.
Polygon	A Layer-2 scaling solution for, providing faster and cheaper transactions.
Gnosis Chain	An EVM-compatible chain known for its stability and low transaction costs.
Shiden Network	A smart contract platform and parachain on the network, focused on dApp development.
Avalanche	A high-performance blockchain known for its fast finality and scalability.
Astar Network	A multi-chain dApp hub on, supporting both EVM and WebAssembly.

The list of supported blockchains is based on information from multiple sources. ^{[2] [5]}​

Use Cases and Ecosystem

As a regulated and stable digital currency, JPYC is positioned to serve as a versatile financial tool across various sectors of the digital and traditional economy.

Decentralized Finance (DeFi)

JPYC is a critical component for DeFi protocols in the Japanese market. It is used as a stable trading pair on decentralized exchanges (DEXs), a source of collateral in lending and borrowing platforms, and a means for yield farming and liquidity provision without exposure to the price volatility of other crypto-assets. The launch of JPYC/USDC trading pairs created a vital link between the Japanese and global stablecoin markets, enhancing liquidity. ^[5]​

Payments and Remittances

With its low transaction costs and high speed, JPYC is an efficient medium for both domestic and cross-border payments. On October 28, 2025, JPYC Inc. announced a partnership with I.P.S. Inc. to develop a digital remittance service for the Philippines, showcasing its potential to modernize international money transfers. The company is also exploring B2C and B2B settlement systems in collaboration with partners like Densan System Co., Ltd. (DSK). ^{[2] [1]}​

E-commerce and Corporate Use

JPYC provides a seamless and stable payment method for online merchants and NFT platforms. For businesses, the integration with "N Suite," a Web3 wallet for corporations, enables the use of JPYC for treasury management and B2B payments. Additionally, the enterprise software firm Asteria plans to integrate JPYC functionality into its platform, which is used by over 10,000 companies. Crypto wallet provider HashPort also intends to support JPYC transactions. ^{[3] [1]}​

Novel Applications

The ecosystem has expanded to include innovative use cases. A partnership with the service Nudge allows JPYC to be used for credit card repayments. It has also been integrated into systems for Japan's "Furusato Nozei" (hometown tax) program and adopted as an employee incentive in Web3-based corporate services. Furthermore, JPYC has been used in proof-of-concept experiments for blockchain-based carbon credit trading. ^{[2] [1]}​

JPYC Inc. (Company Profile)

JPYC Inc. is the Japanese financial technology company responsible for the issuance and management of the JPYC stablecoin. Headquartered in Tokyo, the company was founded in November 2019. Its stated mission is "to propose a new way of money through stablecoins," aiming to eliminate boundaries between the real world and the digital economy by creating a more flexible and efficient flow of capital. ^[1]​

The company is led by its founder and CEO, Noritaka Okabe, a prominent figure in Japan's blockchain industry who also holds leadership roles in the Japan Cryptoasset Business Association (JCBA) and the Blockchain Promotion Association (BCCC). Under his leadership, JPYC Inc. has navigated a complex regulatory environment to become the first licensed issuer of a yen-pegged stablecoin in Japan. The company has set an ambitious target of reaching 10 trillion yen (approximately $65.4 billion) in circulating supply within three years of its official launch. ^{[2] [3]}​