CoinDesk
JPYC had only 3.2 billion yen in circulation as of Oct. 23, roughly a quarter of its first-year target and far below the 12.1 billion yen cumulatively issued. CEO Noritaka Okabe said, “Frankly, I don’t think it’s growing,” blaming Japan’s 1 million yen transaction limit for Type II funds-transfer providers for slowing corporate adoption.
Why it matters
JPYC is backed by bank deposits and Japanese government bonds, so its issuer earns interest on the reserves. Tokens that are redeemed do not contribute to the stablecoin’s outstanding balance or its potential interest income. The gap between issuance and circulation therefore points to a retention problem, not just weak initial distribution.
The limit has also made larger corporate use cumbersome. Asteria, which plans to hold 1 billion yen in JPYC, has had to build its balance through installments. Japan eased the rule in May by allowing 1 million yen per request instead of per day, but rapid repeat transactions remain restricted.
Market impact
JPYC briefly topped 4.2 billion yen in circulation after South Korean exchange Upbit listed it. The listing pushed JPYC above its 1 yen price and triggered minting for arbitrage, with Okabe estimating that about 35 billion yen changed hands across Upbit and Uniswap in one day. Circulation later fell back toward 3 billion yen, showing that trading activity did not create durable payment demand.
The weak result contrasts with partnerships involving AZ-COM Maruwa, SBJ Bank and LINE NEXT. AZ-COM is developing payments for about 2,300 business partners, while the bank and LINE NEXT are testing stablecoin wallet top-ups. Okabe is targeting tens of billions of yen in circulation in JPYC’s second year, while Japan’s Financial Services Agency reviews the rules ahead of a roadmap expected in early 2027.
Frequently asked questions
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How much JPYC was in circulation after its first year?
JPYC had 3.2 billion yen in circulation as of Oct. 23, roughly a quarter of its first-year target.
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Why has corporate adoption of JPYC been slow?
CEO Noritaka Okabe blamed Japan’s 1 million yen transaction cap for Type II funds-transfer providers, which makes larger corporate purchases cumbersome.
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What happened after Upbit listed JPYC?
Circulation briefly topped 4.2 billion yen, while about 35 billion yen changed hands across Upbit and Uniswap in one day. Circulation later fell back toward 3 billion yen.
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Why does circulation matter to JPYC’s business model?
JPYC is backed by bank deposits and Japanese government bonds, allowing its issuer to earn interest on reserves. Redeemed tokens no longer contribute to the outstanding balance or potential interest income.
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What is JPYC targeting in its second year?
CEO Noritaka Okabe is targeting circulation in the tens of billions of yen, roughly a tenfold increase from current levels.
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