Japanese Yen-backed Stablecoin Launched on Ethereum and Polygon
JPYC, a Tokyo-based fintech firm, has launched a Japanese Yen-backed stablecoin. The JPYC stablecoin is backed 1:1 by bank deposits and government bonds, maintaining parity with the yen.
Yen-Backed JPYC Stablecoin on Ethereum, Polygon
- The global stablecoin market, mainly USD-pegged, is over $300 billion, prompting interest in Yen-backed digital assets.
- JPYC President Noriyoshi Okabe announced that seven companies are interested in integrating the new stablecoin.
- JPYC introduced JPYC EX, a platform for issuing and redeeming the token under Japan's Act on Prevention of Transfer of Criminal Proceeds.
- JPYC aims to reach an issuance balance of 10 trillion yen within three years, positioning it as a foundation for digital financial infrastructure in Japan.
Potential Stablecoin Competition in Japan
- Monex Group plans to launch its own yen-pegged stablecoin.
- Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corp, and Mizuho Bank are working on a yen-backed stablecoin via MUFG’s Progmat platform.
- Japan’s Financial Services Agency may allow banks to hold and invest in cryptocurrencies like Bitcoin (BTC).
- Glassnode data indicates the Stablecoin Supply Ratio (SSR) Oscillator is near cycle lows, suggesting abundant stablecoin liquidity relative to Bitcoin.
Historically, such conditions precede stronger buying activity when market confidence returns, potentially indicating renewed upside momentum for the crypto market once sentiment improves.