Japanese startup JPYC Inc. has launched the country's first regulated stablecoin pegged to the Japanese yen. The stablecoin, also named JPYC, is backed 1:1 by Japanese yen in bank deposits and government bonds.

Initially deployed on Ethereum, Avalanche, and Polygon, the move marks a significant step for Japan into the global stablecoin arena. The launch introduces a new, regulated, non-USD-backed stablecoin to the market, potentially diversifying the digital currency landscape currently dominated by the US dollar.

This development comes as Japan’s financial giants, including Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corp, and Mizuho Bank, are reportedly exploring their own yen-backed stablecoins. JPYC Inc. has set an ambitious target of reaching 10 trillion yen in circulation within three years.