JPYC yen stablecoin reaches only a quarter of its first-year circulation target

Japan's JPYC, a yen-denominated stablecoin, has underperformed in its first year, with circulation reaching only a quarter of the target set by its issuer. Chief executive Noritaka Okabe told NADA NEWS that he does not think the token is growing, adding that trading volume was "not bad" but that the amount in circulation was unsatisfactory.

According to Nikkei, about 3.2 billion yen (roughly $20 million) was in circulation as of Oct. 23, against cumulative issuance of 12.1 billion yen. The gap reflects tokens that have since been redeemed. The figure is close to the $20.85 million shown by DeFiLlama.

Circulation briefly exceeded 4.2 billion yen in September after the South Korean exchange Upbit listed JPYC. The listing lifted the token's market price above 1 yen and prompted traders to mint new tokens for arbitrage. Okabe estimated that around 35 billion yen changed hands across Upbit and Uniswap in a single day, before circulation dropped back to about 3 billion yen.

The figures matter for the business model, because JPYC is backed by bank deposits and Japanese government bonds and its issuer earns interest on those reserves. A smaller supply in circulation means less potential interest income.

Okabe attributed the weak results partly to a daily issuance limit of 1 million yen under Japan's Type II funds-transfer rules. In May, JPYC relaxed the restriction to 1 million yen per request instead of per day, though rapid repeat transactions remain restricted. The cap has hampered corporate adoption: software company Asteria, which plans to hold 1 billion yen in JPYC, has had to build its balance in installments.

The results contrast with a growing partner list. Logistics firm AZ-COM Maruwa signed an alliance in July to develop payments for about 2,300 business partners. SBJ Bank and LINE NEXT agreed earlier this month to test bank-linked stablecoin wallet top-ups, although that project is still at the trial stage.

Japan's Financial Services Agency is reviewing stablecoin regulation, with a roadmap expected in early 2027. Okabe now wants circulation to reach tens of billions of yen in JPYC's second year, roughly a tenfold increase from current levels.