Tokyo-based fintech company JPYC has launched the first stablecoin backed by the Japanese yen along with a platform for issuing the new currency, amid an increasing global race to contain the growing market.

The Japanese yen stablecoin JPYC went live on Monday and is individually backed by bank deposits and government bonds, and also has a 1:1 exchange rate with the yen, the company said on Friday.

At a press conference in Tokyo, JPYC President Noriyoshi Okabe said his company's stablecoin is a “milestone in the history of Japanese currency,” and has also attracted interest from seven companies planning to merge it, according to a report by Business Insider Japan.

The launch of JPYC came as the global stablecoin market, dominated by dollar-pegged assets such as USDT (USDT) and Circle's (USDC), has exploded to a market capitalization of more than $308 billion. US dollar stablecoins have already established a foothold in Japan, with Circle launching USDC in the country on March 26.

Stablecoin platform launched

In conjunction with its stablecoin, the company also launched JPYC EX, a dedicated platform created for token issuance and redemption, which is governed by strict identity and transaction verification under the Prevention of Transfer of Proceeds of Criminal Act.

Users can deposit JPY into an account via bank transfer to receive JPYC to a registered wallet address and also redeem the amount in Yen to a withdrawal account.