Japan has just officially released the world's first stablecoin pegged to the yen (JPY), marking a major milestone in its efforts to integrate traditional finance with blockchain technology.

According to Reuters, this project was developed by fintech company JPYC. JPYC is 100% backed by domestic deposits and Japanese government bonds, with a 1:1 exchange rate with the yen.

Multi-chain technology application and operation mechanism

JPYC said that its stablecoin does not charge transaction fees, but profits will come from government bond interest.

The token will operate on three major blockchain networks including Ethereum (ETH), Avalanche (AVAX) and Polygon (MATIC), expanding its application capabilities in many different ecosystems.

Many Japanese businesses are said to be planning to integrate JPYC into their payment systems and financial services.