Densan System and JPYC Partner on Joint Study of Japanese Yen Stablecoin "JPYC"
Densan System has concluded a basic agreement with JPYC Corporation for a joint study toward the social implementation of payment, remittance, and settlement services utilizing the Japanese yen stablecoin "JPYC".
Overview of This Agreement
Both companies will iteratively develop use cases for B2C/B2B payments and inter-company settlements by utilizing Densan System's bill collection agency and convenience store payment network of over 65,000 stores built across convenience stores and drugstores nationwide, along with the Japanese yen stablecoin "JPYC" issued by JPYC. Rather than stopping at verification, they will advance cross-channel design usable across various channels such as physical store payments and e-commerce payments, implementing them as services with social implementation in mind.
By adopting the Japanese yen stablecoin "JPYC" as the payment infrastructure, they will ensure connectivity with external services and advanced scalability while emphasizing ease and convenience for general consumers without significantly changing their existing payment experience. They will further examine the feasibility of payment experiences that combine institutional compliance with technical rationality, maintaining the UX of conventional digital payment methods such as QR codes, barcode and touch terminal payments at registers, and simple online payments, while enabling payments that combine points and coupons with stablecoins.
Background
While cashless payment adoption continues to advance, areas where cash-based procedures remain and cross-border transactions still face cost and time losses. The development of payment methods that respond to diverse needs, particularly for cross-border e-commerce and inbound tourism, is an urgent social issue.
To address this situation, Japan implemented the revised Payment Services Act in June 2023, making it institutionally possible for banks and fund transfer service providers to issue electronic payment instruments (stablecoins).
Based on this system, JPYC obtained registration as a "fund transfer service provider" under Article 37 of the Payment Services Act on August 18, 2025. They plan to begin issuing and redeeming "JPYC," Japan's first electronic payment instrument exchangeable 1:1 with the Japanese yen, from autumn 2025. The backing assets will be preserved in cash and Japanese government bonds, with planned support for multiple blockchains including Polygon, Avalanche, and Ethereum. These developments are creating an environment for building flexible and efficient digital payment infrastructure.
Considering this institutional development and the emergence of Japanese yen stablecoins, Densan System announced a basic agreement on capital and business alliance with JPYC on May 7, 2024, advocating for the social implementation of low-cost new payment and remittance infrastructure, and clearly stating considerations for "JPYC payments" for convenience store payment slips and utilization in EC and tourism sectors.
This agreement represents a deepening of that collaborative relationship.
Future Prospects
Going forward, both companies will systematically materialize requirement definition, demonstration, and operational design with commercialization in mind, expanding into mechanisms that can be used safely in daily life. They will sequentially design user experiences connected to JPYC's issuance and redemption service (JPYC EX), focusing on areas that improve convenience for both consumers and businesses, including small-amount, high-frequency payments, streamlining billing and settlement operations, combined use with points and coupons, and creating usage scenarios in local governments, tourism, and regional contexts. They will establish operational rules aligned with institutional and technical aspects, aiming for continuous business utilization and commercialization.
Norbert Gehrke
