Tokyo-based firm JPYC has launched Japan’s first yen-backed StableCoin along with a platform to issue the new coin, amid a growing global race to corner the growing market.
The Japanese yen stablecoin The JPYC went live on Monday and is backed one-to-one by bank deposits and government bonds, and also has an exchange rate of 1:1 with the yen, the company said on Friday.
At a press conference in Tokyo, JPYC president Noriyoshi Okabe said the stablecoin from his company is a “major milestone in the history of Japanese currency,” and has also attracted interest from seven companies that plan to integrate it, according in a report from Business Insider Japan.
JPYC’s launch comes as the global StableCoin market, dominated by dollar-pegged assets like USDT (USDT) and circle (USDC), have explode to have a market capitalization of more than $308 billion. US Dollar StableCoins have already established a foothold in Japan, with the launch of the USDC Circle in the country on March 26.
Launch of the StableCoin platform
Along with its StableCoin, the company also launched JPYC EX, a dedicated platform created for token issuance and redemption, governed by strict identification and transaction verification under the Prevention of Trafficking in Criminal Offenses Act.
Users can deposit Japanese yen into an account via bank transfer to receive JPYC to a registered wallet address and also receive a refund in yen to an account upon withdrawal.
Long-term, JPYC hopes to “achieve a balance of issuance of 10 trillion yen in the next three years and take on the challenge of creating a new social infrastructure through StableCoins.”
The StableCoin market in Japan may soon have other contenders
JPYC may not be the only company with a long-term stablecoin. Monex Group, a financial services company based in Tokyo, announced in August that it had plans to launch A stablecoin pegged to the Japanese yen.
Related: Money Giant Western Union to Pilot StableCoin-Powered Transfer
Three of Japan’s largest banks, Mitsubishi UFJ Financial Group (MUFG), Bank Sumitomo Mitsui Banking Corp. (SMBC) and Mizuho Bank, are also Hoping to jointly issue a yen-pegged stablecoin on MUFG’s Issuance Platform.
At the same time, Japan’s financial services agency may be preparing to review regulations already Allow banks to acquire and hold cryptocurrencieslike bitcoin (BTC), for investment purposes.
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