Japan's JPYC stablecoin falls short of first-year target
Japan's JPYC stablecoin misses first-year goal
Japan's JPYC stablecoin, a digital token pegged to the Japanese yen, has fallen well short of its first-year target. Only about a quarter of the intended amount is in circulation.
The issuer's CEO said the token is not growing as expected, despite partnerships with several Japanese companies.
Key figures from year one
- 3.2 billion yen in circulation as of Oct. 23
- 12.1 billion yen issued in total
- Circulation briefly topped 4.2 billion yen in September
- CEO Noritaka Okabe is targeting tenfold growth in year two
What CoinDesk reported
CoinDesk reported that JPYC reached about a quarter of its circulation target in its first year. CEO Noritaka Okabe told NADA NEWS that he does not think the token is growing. He said trading volume was not bad, but he was not satisfied with the amount in circulation.
The report cited Nikkei data showing 3.2 billion yen, or about $20 million, in circulation compared with 12.1 billion yen issued cumulatively.
Why circulation stayed low
Okabe blamed a 1 million yen cap tied to Japan's Type II funds-transfer rules, which regulate certain payment service providers. The limit originally applied per day. In May, JPYC eased it to 1 million yen per request, but rapid repeat transactions remain restricted.
The cap has frustrated corporate adoption. Software firm Asteria, which plans to hold 1 billion yen in JPYC, has been forced to build its balance through installments.
A brief spike happened in September when South Korean crypto exchange Upbit listed JPYC. Traders rushed to mint new tokens for arbitrage. Okabe estimated that about 35 billion yen changed hands across Upbit and Uniswap in a single day before circulation fell back to around 3 billion yen.
Partnerships and business model
Despite the weak figures, JPYC has signed several partners. Logistics firm AZ-COM Maruwa formed an alliance in July to develop payments for about 2,300 business partners. SBJ Bank and LINE NEXT also reached agreements.
Low circulation matters for revenue because JPYC is backed by bank deposits and Japanese government bonds. The issuer earns interest on those reserves, so less money in circulation means less potential interest income.
What is confirmed
- JPYC had 3.2 billion yen in circulation as of Oct. 23.
- Cumulative issuance stood at 12.1 billion yen.
- Upbit listed JPYC in September.
- Okabe has set a target of tenfold growth in year two.
What is still unclear
It is not clear whether JPYC will reach its tenfold growth target. The report also does not say if or when the transaction cap might change.
Why this matters
Because the issuer earns interest on reserves backing the token, weak circulation directly limits potential income. Corporate adoption is therefore important to JPYC's business model.
What happens next
Okabe is targeting tenfold growth in year two. No specific timeline or detailed plan beyond that goal was provided.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.