Japan launches first yen-pegged stablecoin as digital payments gain momentum
Japan has introduced its first stablecoin linked to the yen, marking a cautious step toward digital payments in a country where many consumers still favor cash and credit cards, Kazinform News Agency correspondent reports.
Japanese startup JPYC began issuing the digital currency, also called JPYC, on Monday. The tokens are fully backed by domestic savings and Japanese government bonds and can be converted directly into yen. The company aims to issue up to 10 trillion yen, or about $66 billion, over the next three years, hoping to see wider international use of the asset.
JPYC said it would initially waive transaction fees to promote adoption and plans to generate revenue from interest earned on government bond holdings. Stablecoins are digital assets whose value is tied to a traditional currency, offering faster and cheaper transactions. According to the Bank for International Settlements, dollar-pegged stablecoins dominate the market, accounting for more than 99 percent of global circulation. U.S. President Donald Trump has expressed support for their growth, while interest in stablecoins has been spreading to other regions.
Reportedly, Japan’s three major banks are also preparing to issue their own stablecoins.
Officials have cautioned that the rise of stablecoins could shift funds outside traditional banking channels and alter the structure of global payment systems. Bank of Japan Deputy Governor Ryozo Himino said last week that regulators need to adapt as stablecoins begin to play a more significant role in international settlements.
Elsewhere in Asia, South Korea plans to allow companies to issue won-based stablecoins, while China is considering similar initiatives for yuan-backed tokens.
Earlier it was reported that Kazakhstan had launched the Evo stablecoin together with Solana and Mastercard.