JPYC Representative Addresses Stablecoin Price Discrepancy Amid Rapid Growth

Okabe Noritaka, CEO of JPYC, has addressed the price discrepancy of JPYC (JPY Coin), a stablecoin pegged to the Japanese yen.

JPYC began trading on Upbit on September 17, with its price surging above 2 yen per token shortly after listing. The market formed at a higher price due to initial issuance at 1 yen per token, triggering arbitrage selling as liquidity surged. By 9 AM on September 18, circulating supply reached approximately 4.26 billion JPYC, up 2.2 times from the previous day.

Okabe stated: "I believe JPYC has become a great opportunity to introduce this asset to many people. With overseas exchanges not having a 1 million yen limit, I felt JPYC could spread rapidly abroad. If it spreads internationally, it would support national interests by purchasing government bonds without repayment."

He acknowledged challenges including insufficient reserves after rapid issuance and a surge in account applications requiring staff to work late into the night. Okabe expressed gratitude to employees for their efforts.

"I had no idea Upbit would list JPYC so quickly or that it would record over 3 billion yen in first-day trading volume," he said, noting that while the listing was unexpected, it exceeded all expectations.

He also highlighted that Japanese electronic payment service providers have yet to begin trading JPYC, despite compliance with regulations. Okabe hopes for swift adoption by these entities, as JPYC is designed to be a compliant stablecoin under Japanese law.

"JPYC is issued only after receiving 1 yen per token, ensuring it can always be redeemed at face value regardless of secondary market price," he emphasized, urging users to trust the system.