#Japan #Tokyo #stablecoin #JPYC #Densan System

JPYC and Densan System Collaborate for Payment Innovations

On September 17, 2025, JPYC Inc., led by its President Noritaka Okabe, announced a foundational agreement with Densan System Inc., a subsidiary of Densan System Holdings, under the leadership of President Ryoji Kobayashi. The primary focus of this collaboration is to explore the implementation of a payment, remittance, and settlement system utilizing the Japanese yen-backed stablecoin, JPYC.

This agreement is a significant leap forward, representing JPYC's potential as a real payment infrastructure, marking a journey toward expanding an open ecosystem for stablecoins. By leveraging Densan System’s comprehensive payment network, which includes over 65,000 convenience stores and drugstores nationwide, both companies aim to create groundbreaking use cases for B2C and B2B transactions, enhancing the overall payment experience.

Overview of the Agreement

The partnership centers on integrating JPYC with Densan System’s established payment network. This will not only involve verification processes but also extend to creating an omnichannel payment platform suitable for both in-store and e-commerce transactions. The integration focuses on maintaining user-friendly payment experiences that align with conventional methods like QR Code and barcode payments while enabling seamless transactions with features such as points and coupons. This revolutionary approach aims to assure a smooth transition for consumers, without introducing complexities into existing payment patterns.

The Background of the Partnership

As cashless payment methods become increasingly prevalent, challenges remain—specifically in areas still reliant on cash procedures or cross-border transactions. The costs and time losses associated with these traditional systems are apparent, especially for cross-border e-commerce and tourists visiting Japan, which highlights the urgent need for diverse payment solutions.

To address these challenges, Japan enacted amendments to the Payment Services Act in June 2023, enabling electronic payment mechanisms like stablecoins to be issued by banks and financial service providers. With this legislative framework, JPYC obtained registration as a 'Fund Transfer Service Provider' on August 18, 2025, paving the way for the launch of the JPYC stablecoin, which will allow exchanges of 1:1 with Japanese yen starting in autumn 2025. The underlying assets will be secured by cash and Japanese government bonds, designed to meet the requirements of multiple blockchain platforms like Avalanche, Ethereum, and Polygon, creating a flexible and efficient digital payment infrastructure.

Densan System recognizes the importance of this regulatory evolution and the arrival of yen-denominated stablecoins. They publicly announced their strategic partnership with JPYC on May 7, 2024, aiming for cost-efficient new payment and remittance systems while clearly outlining the use of 'JPYC payments' for convenience store bills and in e-commerce and tourism sectors. The recent agreement further deepens this collaboration.

Future Outlook

Moving forward, both companies are committed to detailing the requirements, validation, and operational design gradually, ensuring a robust system for everyday use. They aim to capitalize on benefits such as small-value, frequent payments, improving billing and settlement efficiency, combining points and coupons, and creating local use cases in municipalities and tourism. The plan is to develop user experiences connected with the issuance and redemption service of JPYC (JPYC EX), structured to ensure regulatory compliance and operational effectiveness.

Diverse Initiatives Utilizing JPYC

JPYC operates as an 'open financial infrastructure,' allowing businesses and developers to incorporate its technology without specific contracts. This flexibility fosters the integration of JPYC across a multitude of industries and applications. Multiple services are already exploring JPYC integration:

1. SaaS Collaboration with ASTERIA Warp: Development of integration features for 'ASTERIA Warp,' a no-code platform used by over 10,000 companies, allowing for smoother fund transfer procedures through workflow automation.

2. HashPort Wallet: The leading web3 wallet in Japan, scheduled to renew its services in October 2025, will add support for JPYC, offering cutting-edge user experiences to its 700,000 users.

3. JPYC Payments with Nudge Credit Card: Nudge Inc.’s next-gen credit card will allow users to settle payments via JPYC, facilitating transactions at approximately 150 million Visa merchants worldwide.

Company Profiles

Densan System

• - Headquarters: Gifu, Japan.
• - Key business areas: Information services, payment collection services.
• - Website: Densan System Holdings

JPYC Inc.

• - CEO: Noritaka Okabe.
• - Founded: November 2019.
• - Headquarters: Tokyo, Japan.
• - Focus: Issuance and redemption of electronic payment instruments, consulting on blockchain technologies.
• - Website: JPYC

This collaboration between JPYC and Densan System has the potential to reshape the landscape of digital payments in Japan, promoting efficiency, user-friendly experiences, and broader access to stablecoin technology.