The archive · Money & Fintech · Strategic decision · 2019–2026
JPYC waited since 2021, then launched Japan's first licensed yen stablecoin
After four years as a prepaid token, JPYC took Japan's first funds-transfer license and launched the country's first regulated yen stablecoin
JPYC
What the business is
JPYC issues and redeems a yen-pegged stablecoin, JPYC, backed 1:1 by yen deposits and Japanese government bonds, running on Ethereum, Avalanche and Polygon with zero transaction fees.
Starting capital：¥4.4M early round backed by Circle Ventures (2021); ¥1.78B Series B1 (Feb 2026); extended to ¥6B (~$38M) Series B with AZ-COM Maruwa (Aug 2026)
How it started
Serial entrepreneur Noritaka Okabe founded Japan Crypto Asset Market (now JPYC Inc.) in November 2019. After a proof-of-concept and regulatory discussions with the Financial Services Agency in 2020, JPYC launched the country's first yen-pegged digital token in January 2021 and obtained FSA registration as a prepaid payment instrument in March 2022. Circle, issuer of USDC, was its first investor.
What happened
In June 2023 Japan's revised Payment Services Act created the first legal framework for fiat-backed stablecoins, requiring issuers to register under the Funds Settlement Act. JPYC spent 2023–2025 pursuing funds-transfer and exchange licenses, and on August 18, 2025 the FSA approved it as a funds transfer service provider — the first company licensed under the new regime. It launched JPYC and the JPYC EX issuance/redemption platform on October 27, 2025.
How it ended up
JPYC is live and scaling: Japan's first legally recognized yen stablecoin, with a target of ¥10 trillion ($65B) in circulation within three years and integrations with Densan System, Asteria, HashPort and logistics group AZ-COM Maruwa. Its Series B reached ¥6B (~$38M) by August 2026.
Background
JPYC is a Tokyo fintech that issues and redeems a yen-pegged stablecoin. Serial entrepreneur Noritaka Okabe founded the company in November 2019, ran a proof-of-concept and regulatory discussions with Japan's Financial Services Agency in 2020, and in January 2021 launched the country's first yen-pegged digital token — as a prepaid payment instrument, because Japan had no legal category for stablecoins at the time.
The company's bet was that Japan would eventually legalize fiat-backed stablecoins and license non-bank issuers. When the revised Payment Services Act created that framework in June 2023, JPYC was positioned to convert: it registered as a prepaid instrument in 2022, spent two years pursuing funds-transfer licenses, and in August 2025 became the first company approved as a funds transfer service provider under the new regime.
On October 27, 2025, JPYC launched its regulated stablecoin — backed 1:1 by yen deposits and Japanese government bonds, running on Ethereum, Avalanche and Polygon — alongside the JPYC EX exchange. The company targets ¥10 trillion ($65B) in circulation within three years; by August 2026 its Series B had reached ¥6B (~$38M) with logistics group AZ-COM Maruwa as a strategic investor.
What has to be true
- Japan's 2023 law created a brand-new licensed category, and regulators wanted a credible first mover rather than letting foreign stablecoins dominate.
- Four years of prepaid-instrument operations gave JPYC the audit history, compliance infrastructure and FSA relationships that licensing demanded.
- Circle's early investment signaled that a non-bank issuer could meet global standards, and JPYC gained near-100% share of Japan's domestic stablecoin market before megabanks moved.
- Stablecoin economics work in Japan's new rate environment: issuers earn returns on reserves, making licensing a real business rather than a token gesture.
What can be applied
When a market is unregulated, occupy the nearest legal approximation, build the compliance record, and wait: first-mover licensing rewards whoever was already running under the old rules.
Aftermath
As of August 2026 JPYC is scaling its licensed yen stablecoin: the Series B reached ¥6B (~$38M) with AZ-COM Maruwa joining to use JPYC in corporate payments, and integrations cover payment systems for retailers and e-commerce (Densan System), enterprise data software (Asteria) and wallets (HashPort). The Type II license caps daily issuance and redemption at ¥1M per user, and the company is pursuing wider limits and a Type I license as it works toward its ¥10 trillion three-year circulation target.
Sources
- Japan's JPYC launches country's first yen-denominated stablecoin
- The State Of Stablecoin In Japan
- JPYC: Japanese Yen stablecoin
- Japanese stablecoin firm JPYC raises $38 million in extended Series B
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