JPYC, Japan's yen-backed stablecoin, reached about a quarter of its issuer's circulation target in its first year. CEO Noritaka Okabe blames a 1 million yen cap on transfers and now targets roughly tenfold growth in year two.
JPYC fell well short of expectations in its first year, reaching just a quarter of its issuer's circulation target despite a string of corporate partnerships. CEO Noritaka Okabe acknowledged the shortfall himself. According to CoinDesk, he told NADA NEWS: "Frankly, I don’t think it’s growing."
Circulation lags issuance
Only 3.2 billion yen, around $20 million, was in circulation as of Oct. 23, against cumulative issuance of 12.1 billion yen, according to Nikkei as cited by CoinDesk. The gap reflects tokens that have since been redeemed.
Circulation briefly topped 4.2 billion yen in September after South Korean exchange Upbit listed JPYC. The listing pushed the market price above 1 yen and sent traders rushing to mint tokens for arbitrage. Okabe estimated that about 35 billion yen changed hands across Upbit and Uniswap in a single day, before circulation fell back to around 3 billion yen.
A transfer cap slows corporate adoption
Okabe blamed the results in part on a 1 million yen daily issuance limit tied to Japan's Type II funds-transfer rules. JPYC eased the restriction in May to 1 million yen per request rather than per day, but it still restricts rapid repeat transactions.
The cap has frustrated companies. Software firm Asteria, which plans to hold 1 billion yen in JPYC, has been forced to build its balance through installments.
Partnerships grow while the numbers lag
Logistics firm AZ-COM Maruwa signed an alliance in July to develop payments for about 2,300 business partners. SBJ Bank and LINE NEXT agreed earlier this month to test bank-linked wallet top-ups, though the project remains in the trial stage.
Crypto Briefing adds that more than 150 merchants have started accepting JPYC, with trials at chains including Lawson.
Okabe now wants circulation to reach tens of billions of yen in the second year, a roughly tenfold increase from current levels.
Sources: CoinDesk, Crypto Briefing
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