SS #43 - Japan’s Yen Stablecoin Goes Live

📢 Sponsor | 💡 Telegram | 📰 Past Editions

Good morning everyone!

As October draws to a close, a significant regulatory milestone has emerged from East Asia. Japanese fintech firm JPYC Inc. has officially launched the country's first legally recognized yen-denominated stablecoin, JPYC. This launch is critical: the token is fully backed by yen deposits and government bonds and operates under Japan's revised, strict regulations. As the yen is one of the world's most vital global currencies, observing the impact of a regulated digital yen will be fascinating.

Simultaneously, the stablecoin giant Tether is making a calculated move into the West. CEO Paolo Ardoino announced that Tether is eyeing fresh investments to support the December launch of USAT, a stablecoin designed specifically for the U.S. market. USAT is purpose-built for federal compliance, aligning with the requirements of the GENIUS Act, and will be issued by Tether America, a joint venture with the regulated U.S. crypto bank, Anchorage Digital. Tether's goal is ambitious: to onboard 100 million Americans.

With these major, regulated launches from two global economic heavyweights, stablecoin momentum is undeniable as we approach the end of the year. Stablescope is committed to delivering all the critical stablecoin news directly to your inbox, ensuring you stay ahead of the curve.

Enjoy the read!

Let us know what sort of coverage you would like to see from the new publication.

If you know anybody who would benefit from this content, please help us spread the word!

In Today's Edition:

• Headline: Japan’s Yen Stablecoin Goes Live

• Quick Bites: Tether Eyes Fresh Investments to Push Usat Stablecoin to 100M Americans at December Launch

• Yield of the Week: 101.53% APY on Piku

You read and share. We listen and improve. Send us feedback at [email protected].

HEADLINE

Japan’s Yen Stablecoin Goes Live

State of play: Japanese fintech firm JPYC Inc. launched the country's first legally recognized yen-denominated stablecoin, JPYC, fully backed by yen deposits/bonds and compliant with strict Japanese regulations.

• JPYC is the first stablecoin in Japan to be issued under the country's stringent new regulations (Funds Settlement Act and Payment Services Act, revised in June 2023), providing a high degree of regulatory clarity and security.

• The stablecoin maintains a 1:1 peg to the yen and is backed 100% by yen deposits and government bonds, emphasizing stability and adherence to Japanese law, which requires identity verification (My Number card) for acquisition.

• JPYC is targeting a massive ¥10T ($65.4B) in circulation within three years and has already secured initial adoption plans from several major Japanese businesses, while major Japanese banks (SMBC, MUFG, etc.) are also exploring their own stablecoin issuance.

What’s Next: Corporate integration will swiftly increase through confirmed business partnerships. This accelerates the stablecoin race, forcing Japanese megabanks to rapidly deploy their own yen-pegged tokens to counter JPYC's first-mover advantage and defend their financial turf.

Why it Matters: It fundamentally challenges US dollar stablecoin supremacy by introducing a fully regulated, sovereign G7-fiat digital asset. This compliance model is a global blueprint for institutional adoption, establishing the yen as a key currency in the regulated digital asset space.

Our Take: JPYC's regulatory clarity is its moat and primary value proposition for institutions. While having the first-mover edge, investors must focus on the imminent bank competition, the long-term winner will be determined by which entity (startup or megabank) achieves the deepest integration with Japan's financial and corporate infrastructure.

QUICK BITES

• Kyrgyzstan to launch stablecoin on BNB.

• Clearbank to join Circle payments network.

• Stable hits $825M pre-deposit cap amid 'front-running' allegations.

• Tether unveils synthetic AI dataset to democratize stem intelligence.

• Apollo partners with Coinbase to 'unlock' stablecoin lending business.

• IBM unveils digital asset platform as demand for tokenization, stablecoins grows.

• Canada advances stablecoin framework ahead of next week's federal budget update.

• Zelle weighs stablecoin integration to expand its trillion-dollar payments network abroad.

• Tether eyes fresh investments to push USAT stablecoin to 100M Americans at December launch.

• JPMorgan says Stripe’s ‘twin revolutions’ in AI and money movement could unlock a $350B market.

• Coinbase and Citi to explore digital payments, including stablecoin payouts, for bank's institutional clients.

YIELD OF THE WEEK

Piku USP: 101.53% APY

• The USP token operates as a yield-optimized stablecoin, designed to maintain stability via an initial 1:1 USD Stable backing while incorporating the growth potential of diversified, yield-generating on-chain and off-chain assets.

• Governed by PikuDAO, the stablecoin's reserve backing is initially fully collateralized by USD Stables, with smart contracts and multisig control automating the ongoing moderation and diversification of its reserves.

• The token offers users a multi-tiered APY, including a native 18.91% APY, an 82.62% airdrop APY for the governance token PIKU, plus a bonus APY component, all while referencing an estimated FDV of $80M for the PIKU token.

Euler fxUSD universal vault - 9 Summits curated: 22.93% APY

• The fxUSD stablecoin is solely backed by Lido's staked Ethereum stETH and leverages the f(x) invariant mechanism to ensure continuous 100% collateralization and maintain unparalleled capital efficiency.

• The fxUSD universal vault is curated by "9 Summits" and offers users a return composed of two token rewards: its native governance token, FXN, and rEUL tokens.

• The vault enforces high liquidity and flexibility with a 0% performance fee and a minimal withdrawal time lock of only one day.

Dolomite Looped srUSD: 112.05%-322.41% APY

• Dolomite’s method employs a "looping" strategy that uses srUSD as collateral to borrow stablecoins, which are then immediately swapped back into additional srUSD collateral, maintaining a delta-neutral position since both assets are USD-correlated.

• The core interest earned by the strategy is derived solely from the price appreciation of the srUSD collateral token over time.

• Users can enter the strategy by depositing the major stablecoins USD1, USDC, and USDT and select a leverage ratio between 3x and 9x, with additional rewards earned in the form of Reservoir points and oDOLO tokens.

If you enjoy reading this issue, please consider subscribing. It takes 1 minute of your time, but it would mean the world to us 🙇

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.