Japan's JPYC yen stablecoin reaches a quarter of its first-year circulation target
In brief
- JPYC reached only a quarter of its issuer's first-year circulation target, CoinDesk reported.
- Circulation stood at 3.2 billion yen on Oct. 23 against 12.1 billion yen issued, per Nikkei.
- CEO Noritaka Okabe partly blamed a 1 million yen issuance cap under Type II rules.
- Okabe wants circulation to reach tens of billions of yen in year two.
Circulation is far below issuance
As of Oct. 23, only 3.2 billion yen (about $20 million) of JPYC was in circulation, Nikkei reported, against cumulative issuance of 12.1 billion yen. That's close to the $20.85 million that DeFiLlama shows for the token.
Okabe said trading volume was "not bad." He wasn't satisfied with the amount in circulation.
Circulation did spike once. It briefly went above 4.2 billion yen in September after South Korean exchange Upbit listed JPYC, which pushed the market price above 1 yen and led traders to mint new tokens for arbitrage. Okabe estimated that about 35 billion yen changed hands across Upbit and Uniswap in a single day (his estimate, not a verified figure). After that, circulation fell back to around 3 billion yen.
The business model makes this number important. JPYC is backed by bank deposits and Japanese government bonds, and the issuer earns interest on those reserves.
Lower circulation means less potential interest income.
The 1 million yen cap
Okabe told NADA NEWS the results were partly due to a 1 million yen daily issuance limit tied to Japan's Type II funds-transfer rules. JPYC eased that restriction in May to allow 1 million yen per request instead of per day, but it still restricts rapid repeat transactions.
The cap has frustrated corporate adoption. Software company Asteria plans to hold 1 billion yen in JPYC, and it's had to build that balance in installments.
The weak results come despite JPYC's string of corporate partnerships. Logistics firm AZ-COM Maruwa signed an alliance in July to develop payments for about 2,300 business partners. Earlier in October, SBJ Bank and LINE NEXT agreed to test bank-linked stablecoin wallet top-ups, though that project is still in the trial stage.
“Frankly, I don’t think it’s growing,” CEO Noritaka Okabe told NADA NEWS in an interview
What comes next
Japan's Financial Services Agency is reviewing its stablecoin regulations, and a roadmap is expected in early 2027. Okabe wants circulation to reach tens of billions of yen in JPYC's second year. That's roughly ten times where it sits now.
Frequently asked questions
Why has JPYC's circulation fallen short of its target?
CEO Noritaka Okabe partly blamed a 1 million yen daily issuance limit tied to Japan's Type II funds-transfer rules. JPYC loosened it in May to 1 million yen per request, but it still restricts rapid repeat transactions. CoinDesk reported that the cap has frustrated corporate adoption.
Why does circulation matter to the JPYC issuer?
JPYC is backed by bank deposits and Japanese government bonds, and the issuer earns interest on those reserves. When less JPYC is in circulation, the issuer has less potential interest income.
