JPYC's multi-location empirical analysis: Rapid expansion of physical payment scenarios
TL;DR
JPYC, Japan's first licensed yen-denominated stablecoin, has rapidly advanced its demonstration projects across multiple locations since its launch on October 27, 2025, through collaborations with MUFG, local banks, and South Korean institutions. Its physical payment applications cover 65,000 convenience stores and a network of 600,000 merchants nationwide, as well as cross-border payments and DeFi applications. As of December 2025, its issuance reached 143 million yen, with an average daily on-chain transaction volume of approximately $600,000 and over 100,000 active addresses. Breakthroughs in the regulatory framework, deepened institutional partnerships, and low-cost advantages are the core drivers behind its accelerated expansion.
Core Analysis
Regulatory Breakthrough and Licensed Issuance
On October 27, 2025 , JPYC officially became Japan's first licensed yen stablecoin approved by the Financial Services Agency (FSA). Operating as a funds transfer service, it is based on the revised Payment Services Act, which will take effect in June 2025. JPYC is backed 1:1 by bank deposits and Japanese government bonds (JGB), with reserves held in a trust to ensure redeemability.
Initial release data (as of November 12, 2025):
- Issued in: 143 million yen
- Account holders: 4,707
- Three-year target: 10 trillion yen in issuance.
JPYC is deployed on multiple chains including Ethereum, Polygon, Avalanche, Astar, and Shiden, with the contract address 0x431d5dff03120afa4bdf332c61a6e1766ef37bdb .
Key Institutional Cooperation
| Partner | Announcement time | Cooperation content | Strategic significance |
|---|---|---|---|
| MUFG (Japan's largest bank) | End of 2025 | JPYC is issued through the Progmat platform, supporting cross-border payments and offshore stablecoin exchange. | By building a bridge between traditional finance and on-chain payments, JPYC has reached a market capitalization of 2.3 billion yen (approximately US$15.6 million). |
| Northern Bank + Digital Platformer | November 18, 2025 | The joint research focuses on the interaction between JPYC and the deposit-type stablecoins "Tochika/Totika," covering issuance/redemption models and physical store payments. | Explore the interoperability of local bank digital currencies and on-chain stablecoins |
| ITCEN GLOBAL (Korea) | December 23, 2025 | A joint study on stablecoins by Japan and South Korea focuses on cross-border payment innovation and RWA applications. | Opening up international markets and promoting the East Asian cross-border settlement network |
| Densan Systems | Extended cooperation in September 2025 | Explore the application of JPYC in B2C/B2B payments, e-commerce, and 65,000 convenience stores nationwide , including utility bill payments and e-commerce pickup. | Covering the most extensive offline retail network in Japan |
| NetX/StarPay | Preparations underway until November 2025. | JPYC/cryptocurrency QR code payment and instant settlement system for 600,000+ merchants | Large-scale merchant penetration, connecting Web3 wallets with traditional POS |
| Elliptic | Compliance Cooperation | AML compliance technical support helped JPYC become the first Japanese yen stablecoin approved by the FSA. | Ensure anti-money laundering compliance and meet regulatory requirements. |
Multiple demonstration projects have been launched.
Local pilot projects and application scenarios
Tochituka app in Noto City, Ishikawa Prefecture :
- Tochika stablecoins are now accepted for payments at member stores in Noto City. 1 Tochika = 1 Japanese Yen, with a merchant transaction fee of 0.5%.
- Jointly researching and integrating issuance/redemption, remittance, and fee optimization solutions with JPYC
Bank pilot projects :
- MUFG, Sumitomo Mitsui Banking Corporation (SMBC), Mizuho Bank, and others are participating in stablecoin payment pilot programs, focusing on achieving privacy-compliant payments through Trusted Execution Environment (TEE) technology.
Exploring Cross-Border Payments :
- Collaborating with South Korea's ITCEN to advance a pilot program for cross-border payments between Japan and South Korea.
- The MUFG Progmat platform supports fiat currency exchange with offshore USD stablecoins.
Technical infrastructure deployment
Multi-chain deployment and cross-chain interoperability :
- Ethereum, Polygon (the main active chain, accounting for >90% of transaction volume), Avalanche, and Astar multi-chain support.
- Compatible with cross-chain bridges such as LayerZero, enabling inter-chain payment interoperability.
Payment protocol integration :
- Morpho Protocol : Integrating the JPYC lending market on Ethereum; Steakhouse Financial deploys JPYC liquidity pools.
- Asteria Warp : A no-code adapter that supports JPYC integration into enterprise systems for automated fund transfers, e-commerce, and payroll payments.
- JPYPay.io : A gas-free payment solution that supports low-cost remittances and everyday transactions.
Physical payment scenarios are expanding rapidly.
Offline retail and merchant network
| Payment scenarios | Coverage | Technical solution | User experience |
|---|---|---|---|
| Convenience store payment | 65,000 stores nationwide (through Densan Systems) | JPYC is used for paying utility bills, picking up e-commerce orders, etc. | Covering Japan's densest retail network |
| QR code merchant payment | 600,000+ merchants (NetX/StarPay) | Wallet QR code verification and instant settlement; merchants receive Japanese Yen the next day. | Merchant list submitted, penetration testing in progress. |
| Slash Web3 Integration | physical stores and e-commerce | Merchants receive JPY the next day after scanning a QR code with their wallet. | Connecting on-chain wallets with traditional merchant systems |
| Tochika Member Store | Noto City local store | 1 Tochika = 1 JPY, 0.5% merchant fee | Integration of Local Digital Currency and JPYC Research |
Tria Card Global Visa Merchant Payment
Tria's new bank supports JPYC top-ups and spending at merchants worldwide using Visa cards :
- Everyday consumer scenarios : medical supplies, food (such as GoFood), TikTok Shop and other global Visa affiliate stores.
- Contactless payment : Supports top-ups via Indonesia's QRIS, Japan's Apple Pay, and Suica, etc.
- User feedback : KYC is completed within 30 minutes via My Number Card, top-ups are credited instantly, and users enjoy cash back benefits.
- Funds flow : JPYC was transferred to Tria Wallet for contactless payments; refunded orders were returned to the bank account.
Taxes and Enterprise Applications
Enterprise applications :
- Kajima Construction GO Hey! App : Motivating Construction Workers with JPYC
- Tax Payment : Cryptocurrency holders can convert USD stablecoins into JPYC to pay Japanese taxes.
- Remittance advantages : Fees are less than 1 yen, far lower than the traditional 17.5% international remittance cost.
DeFi and Innovative Scenarios
On January 6, 2026 , Steakhouse Financial partnered with PAO TECH Labs to launch the first JPYC lending marketplace and liquidity pool on Morpho, driving DeFi adoption.
On October 23, 2025 , Bifrost Network partnered with DoubleJump Tokyo to integrate JPYC into the N.suite wallet platform, realizing the first DeFi use case.
On-chain data
Transfer volume and activity
On-chain activity data for December 2025 (based on Ethereum, Polygon, and Avalanche):
| index | Numerical range | average value | Main chain |
|---|---|---|---|
| Daily transfer amount | $225,000 - $899,000 | ~$600,000/day | Polygons account for >90% |
| Working capital | $3 million+ (early December) | - | Polygon is the dominant force. |
| Daily transfer transactions | 1,746-13,926 entries | ~4,000 entries | Polygon: 3,154 transactions; Ethereum: 228 transactions. |
| Cumulative transfers | Over 200,000 transactions (since October 2025) | - | Upward trend |
Circulating supply (December 2025): Approximately 9.5 million JPYC , with an anchor value of approximately US$9.5 million. TVL is consistent with the circulating supply.
Active addresses and holder growth
Sole holders (December 2025 data):
- Daily active addresses : 97,989-110,832
- Monthly active addresses : Over 100,000 (December 2025)
- Active traders : estimated to account for 20-30% of holders, based on transfer patterns.
- Geographical distribution : Polygon chain addresses are growing the fastest, which is related to the promotion of payment integration.
Cumulative transfer amount (from October 2025 to mid-December 2025): Over $50 million , reflecting the adoption of payments and DeFi applications.
The core driving force for accelerated capacity expansion
Improved regulatory framework
The revised Payment Services Law will take effect in June 2025 , introducing three types of stablecoins:
- Funds transfer type (used by JPYC)
- Deposit type
- Trust type
On August 18, 2025 , JPYC registered as a money transfer service provider, becoming the first compliantly issued Japanese yen stablecoin, eliminating regulatory uncertainty .
Deepening Institutional Cooperation
- Traditional banks are entering the market : MUFG, Northern Bank, Resona Bank, and others are participating, facilitating the integration of fiat currency and on-chain payment channels.
- International Expansion : Collaborating with South Korea's ITCEN to Explore the East Asian Market
- Infrastructure providers : Densan, NetX/StarPay offer payment networks covering hundreds of thousands of merchants.
Economic and technological advantages
Cost advantage :
- Remittance fees : Less than 1 yen vs. traditional international remittance 17.5%
- Merchant transaction fee : 0.5% (Tochika) vs. 2-3% for traditional credit cards
Speed advantage :
- Instant settlement : On-chain transfers are confirmed in seconds, and merchants receive payment the next day.
- Cross-border payments : No SWIFT required, direct on-chain exchange
Market Demand : In a global market dominated by US dollar stablecoins, Japanese yen stablecoins fill the gap in Asian fiat currency pegging demand, especially in Japanese corporate cross-border settlements and personal remittance scenarios.
in conclusion
JPYC has rapidly transitioned from licensed issuance to multi-regional verification through a three-pronged approach: regulatory compliance, bank partnerships, and infrastructure integration. As of January 2026, it has been implemented in a nationwide network of 65,000 convenience stores, a payment system for 600,000 merchants, and various scenarios including cross-border remittances and DeFi lending. Daily on-chain transactions reach $600,000, with over 100,000 active addresses. Looking ahead, with the full deployment of the NetX/StarPay merchant network, deepened international cooperation (such as cross-border payments between Japan and South Korea), and the expansion of the DeFi ecosystem, JPYC is expected to achieve a five-fold increase in issuance and a monthly trading volume exceeding $50 million by 2026, becoming a benchmark project for fiat-pegged stablecoin payments in the Asia-Pacific region.