JPY Coin

JPY Coin, or JPYC for short, is a stablecoin pegged to the Japanese yen and issued by Japan-based JPYC Inc. The company is registered as a funds transfer service provider under Japan's Payment Services Act; with this registration, JPYC has moved from the status of a prepaid instrument to that of an electronic payment instrument in the legal sense. The token is available on networks such as Ethereum, Polygon, Avalanche and Kaia.

JPYC's reserves consist of yen-denominated cash, bank deposits and Japanese government bonds; the aim is for the yen value of the tokens in circulation to be backed by these reserves. The token is designed for yen-denominated on-chain payments, decentralized finance applications and cross-border transfers. In a market dominated by dollar-based stablecoins, JPYC offers an option based on a local currency for users and companies that want to transact in yen.

JPYC's price in dollars fluctuates mainly with the exchange rate between the yen and the US dollar rather than with the peg itself. For this reason, the movements seen in the chart on the Lzzo.com page, drawn from DefiLlama's US dollar reference, largely reflect the course of the USD/JPY rate. Reserve transparency, Japanese regulators' stablecoin policy and token liquidity are also factors to watch.