JPYC Reaches Only a Quarter of Its Circulation Target in First Year
JPYC marked its first anniversary with roughly 3.2 billion yen in circulation, about a quarter of target. CEO Noritaka Okabe says the token is not growing and points to a 1 million yen per-transaction cap for Type II funds transfer providers.
One year after launch, Japan's top yen stablecoin is holding roughly 3.2 billion yen (about $20 million) in circulation, around a quarter of its issuer's target. JPYC marked its first anniversary on October 27, 2026, and CEO Noritaka Okabe did not dress up the result in an interview with NADA NEWS.
"Frankly, I don't think it's growing."
Noritaka Okabe, CEO of JPYC
Okabe said trading volume was not bad, but circulation sat below the company's internal targets. The 3.2 billion yen figure is as of October 23 and compares with cumulative issuance of 12.1 billion yen, Nikkei reported. DeFiLlama shows $20.85 million in circulation. The gap between the two numbers reflects tokens that have been minted and later redeemed.
JPYC launched on October 27, 2025, after its issuer registered as a funds transfer service provider in Japan. It runs on Ethereum, Avalanche, Polygon and Kaia, with 1:1 redemption through JPYC EX. Reserves are held in bank deposits and Japanese government bonds, and the issuer earns interest on them. Lower circulation therefore means less potential interest income.
A September spike that did not last
Circulation briefly topped 4.2 billion yen in September after the Korean exchange Upbit listed JPYC. The listing pushed the market price above 1 yen and prompted arbitrage minting. Okabe estimated that about 35 billion yen changed hands across Upbit and Uniswap in a single day. Circulation then fell back to around 3 billion yen.
Okabe blamed a 1 million yen per-transaction cap that applies to Type II funds transfer providers, which he said has slowed corporate adoption. The limit was previously applied on a daily basis and was eased in May to 1 million yen per request, though rapid repeat transactions remain restricted.
The effect is visible in corporate demand. Software company Asteria plans to hold 1 billion yen in JPYC but must build that balance in installments.
Partners ahead of usage
The partner list is longer than the balance sheet suggests. AZ-COM Maruwa signed an alliance in July to develop payments for about 2,300 business partners and carriers, and has also invested in the issuer. On October 20, 2026, JPYC signed a memorandum of understanding with SBJ Bank and LINE NEXT to explore linking bank accounts to JPYC wallets. That arrangement remains at trial stage and commits the parties only to explore integration. More than 150 merchants accept JPYC, with trials at Lawson.
Blockchain Academics has previously covered some of these use cases, including Polygon turning Kansai Electric loyalty points into JPYC and Metaplanet's Bitcoin-backed credit system built on JPYC.
What it means
The gap between integrations and balances is the central issue for year two. Okabe is targeting tenfold growth, which would put circulation in the tens of billions of yen. Even at current levels, JPYC ranks among the larger non-USD stablecoins, trailing euro-tied tokens.
Regulation is the second variable. Japan's Financial Services Agency is reviewing its stablecoin rules, with a roadmap expected in early 2027. For issuers and corporate treasuries weighing yen stablecoins, the open question is whether that review addresses the transfer limits Okabe identifies as the main constraint on his target.
