Japan startup to issue first yen-pegged stablecoin
The stablecoin, which will be called "JPYC", will be fully convertible to the yen and backed by domestic savings and Japanese government bonds (JGBs), the company's CEO Noritaka Okabe told a news conference.
"Initially, we expect demand to come from institutional investors, hedge funds and family offices in Japan," he said.
"Eventually, we aim to have JPYC used overseas as digital yen and delivered to people across the world."
JPYC, which plans to issue the stablecoin around autumn, said it would not charge transaction fees. Instead, the more stablecoins it issues, the more JGBs it will hold, and it would earn money from the interest on those holdings.
Blockchain-based stablecoins - which are typically pegged to a fiat currency and offer faster and cheaper transactions - are gaining much momentum worldwide.
In the U.S., President Donald Trump in July signed into law federal rules and guidelines for stablecoins to facilitate their usage in everyday payments and settlements.
Financial companies from Bank of America (BAC.N), opens new tab to Fiserv (FI.N), opens new tab are preparing to launch their own dollar-backed crypto tokens, although experts warn the path forward may not be simple.
In contrast, in mainland China, where crypto trading is banned, Chinese regulators have asked big local brokers to halt publication of research endorsing stablecoins in a bid to curb a surge in interest among domestic investors.
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