Japan Launches World’s First Yen-Pegged Stablecoin, Backed by Government Bonds

Japan has introduced the world’s first stablecoin pegged to the yen, marking a key milestone in digital finance. 

The coin, called JPYC, is issued by a Tokyo-based startup. It is fully convertible to the yen and backed by domestic savings and Japanese government bonds (JGBs). 

JPYC plans to issue 10 trillion yen (about $66 billion) over three years. It will initially charge no transaction fees to boost adoption, earning revenue from the interest on the bond holdings. 

Despite this launch, experts question whether a yen-based stablecoin will gain strong traction. Dollar-pegged stablecoins still dominate 99% of the market. 

Japan’s three major banks are also exploring stablecoin issuance, which may accelerate adoption. However, regulators warn that stablecoins could challenge traditional banking and require global oversight. 

The debut of JPYC underlines Japan’s push into regulated digital assets and may influence how other countries manage digital currency innovations.