Japan launches world's first yen-pegged stablecoin
The world’s first stablecoin pegged to the Japanese yen was launched on Monday, marking a milestone for Japan’s financial sector, where many consumers still rely on cash and credit cards, News.Az reports, citing Reuters.
Japanese startup JPYC began issuing the new digital currency — also called JPYC — which is fully convertible to yen and backed by domestic savings and Japanese government bonds (JGBs).
The company plans to issue up to 10 trillion yen ($66 billion) worth of JPYC over the next three years and aims for the stablecoin to gain traction in international markets. To encourage adoption, JPYC will not charge transaction fees initially, instead generating revenue from interest earned on JGB holdings.
“We hope to spur innovation by giving startups access to low transaction and settlement fees,” said JPYC CEO Noritaka Okabe during a press briefing. “Increasing global interoperability would benefit us too, so we’re open to capital tie-ups,” he added.
Stablecoins are blockchain-based digital assets typically pegged to a fiat currency, offering faster and cheaper transactions. With strong backing from U.S. President Donald Trump, dollar-pegged stablecoins have surged, now accounting for more than 99% of global supply, according to the Bank for International Settlements.
Interest in stablecoins continues to rise globally. In Japan, the country’s three megabanks also plan to jointly issue stablecoins, the Nikkei daily reported earlier this month.
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