Registered as a money transfer service provider in Japan, JPYC announced it will issue the first yen stablecoin, pioneering such financial instruments in Japan. The company revealed that JPYC will be issued on three blockchains: Ethereum, Avalanche, and Polygon.
JPYC will become Japan's first issuer of yen stablecoins.
Stablecoins are about to sweep across Japan. JPYC, which has been engaged in prepaid payment business since 2021, reports that it has registered as a money transfer service provider in Japan, enabling it to issue the first legally approved yen stablecoin, JPYC.
The company clarified in a press release that the JPYC stablecoin is a different product from JPYC Prepaid (a limited prepaid payment method), with the former having a broader scope of use and being regulated by Japanese authorities.
The JPYC stablecoin will be redeemable 1:1 for yen, with its supporting assets secured by yen instruments (deposits and government bonds). The company has chosen three different blockchains to issue the currency: Ethereum, Avalanche, and Polygon.
The company emphasized that JPYC is viewed as an electronic payment tool, pointing out the distinction between this regulated product and 'crypto assets,' noting that crypto assets 'are susceptible to ongoing price fluctuations and cannot guarantee conversion into legal tender.'
In the future, JPYC will focus on establishing stablecoin issuance and exchange services, and expanding the scope of its stablecoins to accommodate various use cases, including remittances, payments, and even Web3 protocols.
The company stated that it hopes JPYC can be included in 'a wide range of uses, both for businesses and individuals,' and intends to promote the use of yen-denominated stablecoins domestically and internationally, as well as enhance their convenience.
JPYC representative Noritaka Okabe mentioned the potential economic impact of approving stablecoins pegged to the yen, commenting that it could increase demand for Japanese bonds used to support these instruments.
