JPYC Inc., a fintech company based in Japan, announced the introduction of JPYC, the first legally recognised stablecoin priced in yen.
In addition to introducing its specialised issuance and redemption platform, JPYC EX, JPYC Inc. said in a press release that it would begin releasing the JPYC token on Monday.
In August, the business registered with Japan’s Financial Services Agency as a fund transfer service provider.
Yen Stablecoin JPYC
The JPYC stablecoin runs on blockchains such as Avalanche, Ethereum, and Polygon and is intended to maintain a 1:1 peg to the Japanese yen.
In accordance with the Payment Services Act of Japan, the business backs all issued JPYC with 100% reserves maintained in Yen deposits and government bonds. HashPort, a cryptocurrency wallet, plans to facilitate JPYC transactions as well.
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According to the firm, after completing identification verification using the My Number card, Japan’s identity document granted to citizens and residents, users can obtain JPYC using the JPYC EX platform.
The stablecoin issuer wants to increase the number of supported blockchains and partnerships with companies, and it has set the lofty goal of having 10 trillion yen ($65.4 billion) in circulation in three years.
In contrast, USDT, the biggest stablecoin in the world, has around $183.2 billion in circulation at the moment, while the overall stablecoin under circulation is over $300 billion, according to the data from Defilama
According to the corporation, a number of Japanese companies have declared their intention to use JPYC in their offerings. While Asteria intends to include JPYC capabilities into its enterprise data integration software, which is utilised by more than 10,000 businesses, fintech software company Densan System is creating payment systems for retail establishments and e-commerce platforms that incorporate the JPYC stablecoin.
Japan and Crypto
As Japan strengthens regulation of its developing stablecoin industry, the JPYC launch takes place. The nation updated its stablecoin laws in June 2023, requiring service providers to register under the Banking Act and the Funds Settlement Act before they may issue or oversee the stablecoin market.
Additionally, a major regulation shift proposed by Japan’s Financial Services Agency (FSA) may move cryptocurrencies from the Payment Services Act to the Financial Instruments and Exchange Act (FIEA).
Japan is one of the many countries that is moving quite fast with cryptocurrency and blockchain regulations. More involvement in the space clearly shows the government’s interest and trust in the sector while protecting the interests of the users.
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