Hyperithm-Backed JPYC Raises 6 Billion Yen, Gains Early Lead in Yen Stablecoins

Digital-asset investment firm Hyperithm said on Nov. 10 that JPYC, a Japanese yen stablecoin issuer it backed at an early stage, has closed an extended Series B round, bringing its cumulative fundraising to about 6 billion yen.

JPYC completed the Series B round in four closings. It raised 1.78 billion yen in the first and 2.8 billion yen in the second. Subsequent closings and the extension round lifted the total to about 6 billion yen. Japanese startup data provider SPEEDA estimated JPYC's valuation at about 35.9 billion yen on a fully diluted basis.

Investors included venture funds affiliated with Hokuyo Bank, Nishi-Nippon City Bank, Bank of Yokohama and The Awa Bank, as well as funds tied to Sumitomo Life Insurance, Meiji Yasuda Life Insurance and Metaplanet. The extension round was led by AZ-COM MARUWA Holdings, a logistics company listed on the Tokyo Stock Exchange Prime Market.

JPYC was the first company to issue a yen stablecoin after registering with Japan's Financial Services Agency as a funds transfer service provider. When users deposit yen, an equivalent amount of JPYC is issued. Outstanding tokens are fully backed by yen deposits and Japanese government bonds.

JPYC currently circulates on four public blockchains: Ethereum, Polygon, Avalanche and Kaia. It recently had 19,000 accounts, and cumulative issuance has surpassed 3 billion yen.

Its use cases are also expanding. They include a service that converts Diners Club card points into JPYC, JPYC Gateway for settling corporate payments regardless of bank business hours, integration with Line Next's wallet service Unifi, and tax-refund payments for foreign tourists. With AZ-COM MARUWA Holdings, the company is also preparing a payment model that automatically settles funds after parcel deliveries are completed.

Japan's major banks are also moving to issue yen stablecoins. Mitsubishi UFJ, Sumitomo Mitsui and Mizuho announced a joint issuance plan this year, and Japan's Financial Services Agency selected the project for demonstration support.

The three megabanks' stablecoins, however, are to be issued through trust banks and used for inter-institutional securities settlement for the time being. JPYC, by contrast, is available to both individuals and companies and circulates on public blockchains.

Hyperithm has invested in JPYC since before Japan put its stablecoin framework in place. The digital-asset investment and management firm was founded in Seoul and Tokyo in 2018 and now also has offices in Hong Kong and Singapore.

“The fact that regional banks and insurers have joined as shareholders means Japan's financial industry sees JPYC as payment infrastructure,” Hyperithm CEO Oh Sang-rok said. “We have invested in Asian stablecoin issuers since before the rules were established, and JPYC is the first to produce results.”

“When banks enter the market, the market itself gets bigger,” Hyperithm CEO Lee Won-jun said. “For now, JPYC will be the only yen stablecoin used by both individuals and companies on public blockchains.”