Japan's top yen stablecoin falls short of its target in a disappointing first year

That matters for JPYC's business model as the stablecoin is backed by bank deposits and Japanese government bonds, with its issuer earning interest on those reserves. Less money in circulation means less potential interest income.

Okabe blamed the disappointing results in part on a 1 million yen daily issuance limit tied to Japan's Type II funds-transfer rules. JPYC eased its restrictions in May, allowing 1 million yen per request rather than per day, but still restricts rapid repeat transactions.

The cap has frustrated corporate adoption. Software company Asteria, which plans to hold 1 billion yen in JPYC, has been forced to build its balance through installments.

The weak results also contrast with JPYC's growing list of partners. Logistics firm AZ-COM Maruwa signed an alliance in July to develop payments for about 2,300 business partners.

SBJ Bank and LINE NEXT also agreed earlier this month to test bank-linked stablecoin wallet top-ups, though the project remains in the trial stage. Meanwhile, Japan's Financial Services Agency is reviewing stablecoin regulations, with a roadmap expected in early 2027.

Okabe now wants circulation to reach tens of billions of yen in JPYC's second year, a roughly tenfold increase from current levels.