Japan Overtakes Singapore as APAC’s Largest Local Stablecoin Market Driven by JPYC
Japan has become the largest local-currency stablecoin market in the Asia-Pacific (APAC) region, driven primarily by the rise of yen-pegged JPYC. On-chain supply data shows APAC local stablecoin supply rebounded from about $40 million in mid-2025 to roughly $58–60 million by early 2026; JPYC alone accounts for about $26.4 million, nearly half of the regional total. JPYC’s growth followed its launch in October 2025 and expanded steadily through late 2025. Singapore’s XSGD, previously the regional leader with supply near $35–40 million in early 2025, has stabilized around $18 million after a mid-year decline. Other local tokens—Indonesia’s IDRT and smaller tokens pegged to the Australian dollar, Philippine peso and New Zealand dollar—remain marginal and have not meaningfully recovered. The shift underscores regional rebalancing rather than a challenge to dollar-backed stablecoins, which still dominate global supply. For traders, the development signals concentrated local demand for yen-linked stablecoins, potential increased on-chain liquidity and payment use cases in Japan, and a more fragmented APAC local stablecoin landscape.
Neutral
This development is neutral for wider crypto markets. It signals a regional shift in local-currency stablecoin demand toward Japan, but the absolute amounts are small relative to global dollar-backed stablecoin supply. JPYC’s rise (≈$26.4M) increases yen-linked on-chain liquidity and local payment use cases in Japan, which may create trading opportunities in yen-stablecoin pairs, liquidity pools and localized DeFi activity. However, because total APAC local stablecoin supply remains under ~$60M, the impact on major venues, cross-border settlement, and global stablecoin-driven market moves is limited. Historical parallels: regional stablecoin growth (e.g., XSGD’s earlier rise) can boost local on-chain volumes and trading interest, but without broader adoption or pegged-dollar competition, effects remain contained. Short-term: expect higher on-chain flows and localized liquidity in JPYC pairs, occasional volatility in JPYC/XSGD trading and minor arbitrage opportunities. Long-term: if JPYC sustains growth and is adopted for payments or exchange settlement, it could gradually increase Japan-specific crypto activity; still, global market dominance of USD stablecoins would likely remain intact absent much larger issuance or regulatory shifts.