World's first yen-pegged stablecoin JPYC launches today

The first Japanese yen-pegged stablecoin, JPYC, began issuance on Oct. 27, Reuters reported. The stablecoin is issued by a Japan-based startup of the same name and is backed by reserves of Japanese deposits and government bonds (JGBs). To attract early users, JPYC will not charge transaction fees, with the project planning to generate revenue from interest earned on its JGB holdings. Meanwhile, some analysts suggest that JPYC, as a non-U.S. dollar stablecoin, faces inherent limitations. Tomoyuki Shimoda, a former executive at the Bank of Japan (BOJ), noted significant uncertainty about whether a yen stablecoin will gain traction within Japan. He predicted that while participation from major banks could accelerate user adoption, this process would still take at least two to three years.