On Monday JPYC went live as a Japanese regulated stablecoin. It is the first Yen stablecoin to launch under Japan’s stablecoin regulations, which came into force in 2023. The law supports three types of issuers: funds transfer service providers such as JPYC, trust banks acting for third parties, or commercial banks. By international standards, the stablecoin has a novel feature – it offers compensation for fraud under certain circumstances. The issuer also announced a Philippines deal.
The launch represents a significant evolution for JPYC, which had operated a blockchain-based token for several years under prepaid currency regulations. It stopped the prepaid issuance in June. The new stablecoin token is initially available on the Avalanche, Ethereum and Polygon blockchains. While JPYC may be the first regulated stablecoin issued in Japan, it is not the first regulated yen stablecoin.
That designation goes to GMO-Z, a New York regulated state trust, which has been issuing the GYEN stablecoin since 2021 with a market capitalization equivalent to $13 million.
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