A Japanese startup, JPYC, announced it will issue the first stablecoin pegged to the yen after receiving a license this week.
The stablecoin, also named “JPYC”, will be fully convertible to the yen and backed by domestic savings and Japanese government bonds (JGBs), according to CEO Noritaka Okabe.
“Initially, we expect demand to come from institutional investors, hedge funds, and family offices in Japan,” Okabe said at a news conference. “Eventually, we aim to have JPYC used overseas as a digital yen and delivered to people across the world.”
Blockchain-based stablecoins
The company plans to issue the stablecoin around autumn and will not charge transaction fees. Instead, as more stablecoins are issued, JPYC will acquire more JGBs and earn money from the interest on those holdings.
Blockchain-based stablecoins, which are typically pegged to a fiat currency and offer faster, cheaper transactions, are gaining significant momentum worldwide. In the U.S., President Donald Trump signed new federal rules into law in July to facilitate their use in everyday payments and settlements. Financial companies from Bank of America to Fiserv are preparing to launch their own dollar-backed crypto tokens, though experts caution the path forward may be complex.
