Japan’s JPYC Stablecoin Struggles to Grow Despite a Wave of Corporate Deals

A year after launch, JPYC has reached only about a quarter of the supply its issuer hoped for. As of October 23, roughly 3.2 billion yen, around $20 million, was in circulation, even though 12.1 billion yen had been issued in total. The gap exists because many minted tokens were later redeemed. CEO Noritaka Okabe was blunt in a local interview, saying he does not think the coin is growing, though he described trading activity as not bad.

The September Spike on Upbit

Supply briefly rose above 4.2 billion yen in September after South Korea’s Upbit listed the token. The price moved above 1 yen, which pushed traders to mint new coins for arbitrage. Okabe estimated about 35 billion yen changed hands across Upbit and Uniswap in a single day, but circulation then slid back near 3 billion yen.

Why Japan’s Transfer Rules Limit JPYC Adoption

Okabe points to restrictions under Japan’s Type II funds transfer framework. In May, JPYC changed its limit from 1 million yen per day to 1 million yen per request, yet rapid repeat transactions are still blocked. Software firm Asteria, which plans to hold 1 billion yen in JPYC, has had to build its balance in installments. Because the coin is backed by bank deposits and Japanese government bonds, a smaller supply also means less interest income for the issuer.

JPYC Partnerships and the Year Two Target

Logistics company AZ-COM Maruwa signed an alliance in July to develop payments for about 2,300 business partners. SBJ Bank and LINE NEXT agreed this month to test bank-linked wallet top ups, still at the trial stage. Japan’s Financial Services Agency is reviewing stablecoin rules, with a roadmap expected in early 2027. Okabe now wants circulation to climb to tens of billions of yen in year two, roughly a tenfold jump.