SS #23 - Japan Nears First Yen-Pegged Stablecoin With JPYC Approval

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Welcome to our 23rd edition of the StableScope. A new 2x a week, stablecoin-focused newsletter from Launchy. Given the growth of the vertical, there's an increasing demand for more recurring reporting and curation on stablecoins.

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In Today's Edition:

• Headline: Japan Nears First Yen-Pegged Stablecoin With JPYC Approval

• Quick Bites: South Korea’s Financial Regulator to Submit Stablecoin Regulation Bill in October

• Yield of the Week: 16.91% APY in USDC on Superlend

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HEADLINE

Japan Nears First Yen-Pegged Stablecoin With JPYC Approval

State of play: Japan’s Financial Services Agency is set to approve the country’s first yen-pegged stablecoin, issued by fintech firm JPYC, as early as this fall.

• JPYC plans to launch its stablecoin backed by deposits and government bonds, with a goal of issuing up to ¥1 trillion ($6.8B) over three years.

• The stablecoin targets use cases in remittances, corporate payments, and DeFi, and has already attracted interest from hedge funds.

• Japan’s regulatory framework, established in 2022 and strengthened in 2023—positions the country as one of the most proactive in formalizing stablecoin issuance.

What’s Next: JPYC’s launch will likely trigger more yen-backed stablecoins from banks and fintechs, driving experiments in cross-border payments and DeFi adoption.

Why it Matters: It shows how a major economy is formalizing stablecoins under clear rules, potentially diversifying global liquidity away from USD dominance.

Our Take: JPYC is a milestone for regulated stablecoins, but its success hinges on real-world adoption beyond speculation and its ability to compete with bank-issued alternatives.

QUICK BITES

• Keyrock says stablecoin payments projected to top $1T annually by 2030.

• Binance says altcoins, stablecoins, tokenized stocks drove July’s crypto gains.

• South Korea’s financial regulator to submit stablecoin regulation bill in October.

• Wall Street joins consumer advocates to call for edit to GENIUS act on stablecoins.

YIELD OF THE WEEK

Superlend USDC Superfund: 16.91% APY

• The USDC SuperFund is an investment vault designed to generate consistent returns by allocating USDC across established lending protocols, including Aave, Morpho, Euler, and Fluid.

• The fund utilizes a "Yield Ramp-up" mechanism, which gradually distributes earned yield over a period, typically seven days, rather than paying it all at once. This system is intended to create a stable return curve and mitigate the impact of sudden changes in interest rates.

• A 10% performance fee is charged on earnings with every rebalance of the fund's assets.

Carrot: 10.67% APY

• Carrot is a decentralized application on the Solana blockchain that automates stablecoin yield generation. It uses a single yield-bearing token to simplify user access and continuously optimizes investments across the Solana DeFi ecosystem to deliver competitive returns.

• The platform earns its yield through an automated optimization algorithm that routes and rebalances stablecoin funds to capture the most favorable rates. The yield is paid out in stablecoins.

• While there is no direct fee to use the protocol, a 0.05% redemption fee is charged. This fee is not a source of revenue, it is re-invested into the vault to benefit all token holders by contributing to the overall yield.

Tokemak baseUSD: 13.78% APY

• Tokemak's baseUSD Autopool is an ERC-4626 standard product that aggregates stablecoins and ETH, including liquid staking ETH, to automatically allocate them across various liquidity destinations within the Base ecosystem.

• The "Autopilot" system is responsible for rebalancing the assets within the Autopool to maintain an optimal allocation and maximize efficiency.

• The service has a 10% streaming fee, though the fee structure is subject to change in the future.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.