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Japan’s First FSA-Approved Yen Stablecoin JPYC Launches

Full reserves in bank deposits plus JGBs support a zero-fee model focused on compliant issuance and redemption.

Overview

  • JPYC EX enforces identity checks and AML rules, letting users mint or redeem via bank transfer to a registered wallet with an initial 1 million yen per-user daily cap.
  • The token is live on Ethereum, Polygon and Avalanche, offering instant settlement with no fees for issuance or redemption at launch.
  • JPYC targets up to 10 trillion yen in circulation within three years, funding operations through interest on Japanese government bond reserves.
  • Bank of Japan Deputy Governor Ryozo Himino cautioned that stablecoins could partly replace bank deposits, signaling continued regulatory scrutiny.
  • Mitsubishi UFJ, Sumitomo Mitsui and Mizuho plan a joint yen stablecoin for corporate settlement on Oct. 31 via MUFG’s Progmat platform.