Japanese yen stablecoin issuer JPYC has completed an extended Series B round, taking its cumulative fundraising to about 6 billion yen, according to digital-asset investment firm Hyperithm, an early backer of the company.

The raise comes as competition in Japan's yen-denominated stablecoin market begins to take shape. JPYC says it already serves both individual and corporate users on public blockchains, while major Japanese banks are pursuing a separate stablecoin plan aimed initially at institutional settlement.

Series B expanded through multiple closings

JPYC's Series B was completed in four closings. The company raised 1.78 billion yen in the first closing and 2.8 billion yen in the second, with later closings and the extension round lifting the total amount raised to around 6 billion yen.

Startup data provider SPEEDA estimated JPYC's valuation at roughly 35.9 billion yen on a fully diluted basis. Hyperithm disclosed the fundraising update on Nov. 10 and described JPYC as a portfolio company it supported at an early stage.

Backers include banks, insurers and a listed logistics firm

The investor group spans regional bank-affiliated venture funds and financial-sector capital. Participants included funds tied to Hokuyo Bank, Nishi-Nippon City Bank, Bank of Yokohama and The Awa Bank, along with funds associated with 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's current issuance model and network footprint

JPYC was the first company to issue a yen stablecoin after registering with Japan's Financial Services Agency as a funds transfer service provider. Under its model, users deposit yen and receive an equivalent amount of JPYC.

The company says the tokens in circulation are fully backed by yen deposits and Japanese government bonds. JPYC currently circulates on Ethereum, Polygon, Avalanche and Kaia, and it recently reported 19,000 accounts and cumulative issuance of more than 3 billion yen.

Use cases widen beyond crypto-native transfers

JPYC says its applications are expanding across consumer and business payments. Examples cited include a service that converts Diners Club card points into JPYC, JPYC Gateway for corporate payment settlement outside normal bank operating hours, integration with Line Next's wallet service Unifi, and tax-refund payments for foreign tourists.

The company is also preparing a payment model with AZ-COM MARUWA Holdings that would automatically settle funds after parcel deliveries are completed.

Next phase: public-chain retail use versus bank-led pilots

Japan's three megabanks, Mitsubishi UFJ, Sumitomo Mitsui and Mizuho, also announced a joint yen stablecoin issuance plan this year, and the Financial Services Agency selected that project for demonstration support.

For now, however, the megabanks' planned stablecoins are intended to be issued through trust banks and used first for inter-institutional securities settlement. JPYC's current position is different: it is already available to both individuals and companies and is circulating on public blockchains.

Source: en.bloomingbit.io