JPYC, a Japanese yen-denominated stablecoin, briefly surged to around ¥4 immediately after listing on Korea's Upbit, as its market price diverged significantly from its underlying value. The price subsequently stabilized following a sharp increase in supply and the suspension of issuance.
JPYC began trading on Upbit as South Korea's first yen-denominated stablecoin, and its price surged immediately after trading began. It initially traded at 12 won, then rose to more than approximately 3 times that level, approaching ¥4.
Multiple reports of arbitrage trading by users believed to have issued JPYC and driven up its price were confirmed on X that day, while the on-chain supply increased sharply. According to data from JPYC Info, supply jumped from approximately 1.896 billion JPYC to approximately 4.258 billion JPYC, an increase of about 2.25 times.
JPYC is backed by reserve assets as an electronic payment instrument under Japan's Payment Services Act, and JPYC EX issues and redeems it at ¥1 per JPYC. Upbit, meanwhile, issued a warning urging users to check whether redemption was available in the market, the relevant requirements, and market-price volatility.
On the JPYC side, issuance reservations were suspended on Ethereum at 18:44 that day and on Polygon at 22:19, and subsequently resumed. The causal relationship between the price surge and the increase in supply remained unconfirmed, and the price eventually fell to around ¥1 and stabilized.