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JPYC, a yen-backed stablecoin, had 3.2 billion yen in circulation as of Oct. 23, against a first-year target of 12.1 billion yen. CEO Noritaka Okabe blamed a transaction limit that has impeded some corporate use and said he wants circulation to reach tens of billions of yen in the second year.
Japan’s yen-backed JPYC stablecoin had 3.2 billion yen in circulation as of Oct. 23, roughly a quarter of its 12.1 billion yen first-year target, according to figures reported by Nikkei and cited by CoinDesk. CEO Noritaka Okabe acknowledged that the token had not gained the traction the issuer expected, even as the company announced partnerships and plans to pursue much faster growth in its second year.
The 3.2 billion yen figure—about $20 million—is below the 12.1 billion yen in cumulative issuance. The difference reflects tokens that were issued and later redeemed, rather than the amount still circulating. CoinDesk reported that the circulation figure was close to the approximately $20.85 million shown by DeFiLlama. These measures refer to different reporting presentations, and the available report does not give a separate breakdown of redemptions.
JPYC’s circulation briefly rose above 4.2 billion yen in September, after South Korean cryptocurrency exchange Upbit listed the token. Okabe said trading activity surged around the listing and estimated that about 35 billion yen changed hands across Upbit and Uniswap in one day. The figure is his estimate of trading volume; it does not mean that the same amount remained in circulation. Circulation later fell back to around 3 billion yen.
Okabe identified a 1 million yen transaction limit associated with Japan’s Type II funds-transfer rules as one barrier to adoption, particularly for businesses seeking to build larger balances. JPYC changed its rules in May to allow up to 1 million yen per request rather than per day, but still restricts rapid repeat transactions. CoinDesk reported that software company Asteria, which plans to hold 1 billion yen in JPYC, has had to accumulate its balance in installments.
Circulation Limits Affect JPYC’s Model
JPYC’s circulation matters to the issuer’s business as well as to the token’s use in payments. The stablecoin is backed by bank deposits and Japanese government bonds, and its issuer earns interest on those reserves. A smaller amount in circulation can mean fewer reserve assets and less potential interest income, although the report does not quantify the company’s revenue or the effect of redemptions on it.
The figures also show a difference between building partnerships and generating sustained use. JPYC has announced corporate relationships, but the reported circulation remained well below its target after a temporary rise around the Upbit listing. For companies considering the token, the ability to move larger amounts efficiently may affect whether it can serve as a practical payment or treasury tool. The reported rules and restrictions are one part of that picture; the article does not establish that they are the only reason circulation has lagged.
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Partnerships Have Yet to Lift Circulation
JPYC’s first-year results arrived alongside a growing list of announced collaborations. Logistics company AZ-COM Maruwa signed an alliance in July to develop payments involving about 2,300 business partners. SBJ Bank and LINE NEXT agreed earlier in October to test bank-linked stablecoin wallet top-ups. That work is described as a trial, not a completed commercial rollout.
The Upbit listing provided a short-term boost in September, but the subsequent decline in circulation shows why trading activity and sustained holdings should not be treated as the same measure. Tokens can be minted for trading and later redeemed, while a temporary jump in turnover does not by itself show regular business use. Japan’s Financial Services Agency is also reviewing stablecoin rules, with a roadmap expected in early 2027, according to the report.
Adoption and Rule Changes Remain Unclear
The report does not establish how much of JPYC’s shortfall is attributable to the transaction cap, rather than other factors affecting demand. Nor does it provide a detailed breakdown of holders, redemption levels, recurring payment activity or the issuer’s interest income. Okabe’s estimate of one day’s trading across Upbit and Uniswap is not a measure of ongoing use.
The announced partnerships also have different stages and scopes: some involve plans to develop payment services, while the SBJ Bank and LINE NEXT work is still a trial. It remains unclear when, or whether, these initiatives will produce large, sustained balances. The Financial Services Agency’s review could affect the regulatory environment, but its roadmap and any resulting changes have not yet been published.
JPYC’s Second-Year Growth Test
Okabe’s stated goal is to lift JPYC circulation to tens of billions of yen in its second year—roughly ten times the current level. The report does not specify a precise deadline, intermediate targets or steps that would deliver that increase. Progress will depend on whether corporate and wallet initiatives move beyond announcements and trials, and whether users maintain balances rather than redeem tokens.
Further developments to watch include the outcome of the SBJ Bank and LINE NEXT trial, the payment work planned with AZ-COM Maruwa’s business partners, and Japan’s Financial Services Agency roadmap expected in early 2027. Until more figures are available, JPYC’s circulation—not its cumulative issuance or a brief surge in trading—will remain a key measure of whether adoption is catching up with Okabe’s goal.
Key Questions
How much JPYC was in circulation?
3.2 billion yen was in circulation as of Oct. 23, according to figures reported by Nikkei and cited by CoinDesk. That is about $20 million and is lower than cumulative issuance because some tokens have been redeemed.
How did JPYC compare with its first-year target?
The reported circulation was roughly a quarter of the 12.1 billion yen target. Cumulative issuance and circulating supply are different measures, since issued tokens may later be redeemed.
What did JPYC’s CEO identify as a barrier?
CEO Noritaka Okabe pointed to a 1 million yen limit per request under rules for Type II funds-transfer providers, along with restrictions on rapid repeat transactions. The report does not establish that the limit is the only cause of slower adoption.
What is JPYC’s goal for its second year?
Okabe said he wants circulation to reach tens of billions of yen, roughly ten times current levels. No detailed schedule or intermediate milestones were reported.
Are JPYC’s partnerships already driving widespread use?
The report describes a mix of partnerships and planned or trial-stage projects, but does not show that they have produced widespread or sustained use. The SBJ Bank and LINE NEXT wallet top-up work is still a trial.
Source: coindesk.com
