The approval of JPYC, Japan’s first yen-backed stablecoin, by the Financial Services Agency marks a historic shift, leveraging Avalanche’s high-throughput blockchain (capable of 4,500 transactions per second per subnet, per Avalanche’s whitepaper) to enable seamless cross-border payments and DeFi applications, challenging the dominance of dollar-based stablecoins like USDT.
This move aligns with Japan’s evolving regulatory landscape, where a 2021 FSA panel (per Reuters) emphasized balancing innovation with consumer protection, a departure from China’s outright crypto ban, potentially positioning Japan as a global hub for blockchain adoption.
Backed 1:1 by yen and Japanese government bonds, JPYC’s launch on multiple blockchains (Ethereum, Avalanche, Polygon) reflects a strategic diversification, supported by Avalanche’s proven institutional use cases, such as Wyoming’s state-issued stablecoin, enhancing its credibility in global finance.
