The Morpho protocol incorporates the Japanese yen stablecoin JPYC into DeFi lending markets

Source: Yellow Original Title: The Morpho Protocol Incorporates Japanese Yen Stablecoin JPYC into DeFi Lending Markets

Original Link: https://yellow.com/es/news/el-protocolo-morpho-incorpora-la-stablecoin-de-yen-japonés-jpyc-a-los-mercados-de-préstamos-defi The decentralized lending protocol Morpho announced support for JPYC, a regulated Japanese Yen stablecoin, expanding non-USD currency options in DeFi markets.

The integration adds on-chain liquidity denominated in JPY for the first time at an institutional scale.

Steakhouse Financial plans to implement a JPYC-based vault on Morpho by the end of 2024.

JPYC launched in October 2025 as Japan’s first fully regulated Yen stablecoin, overseen by the Financial Services Agency.

What happened

JPYC functions as a 1:1 backed stablecoin by Yen, with reserves held in Japanese bank deposits and government bonds.

The token operates on Ethereum (ETH), Polygon and Avalanche (AVAX) in full compliance with Japan’s Payment Services Act.

JPYC Inc. aims to reach 10 trillion Yen (65-70 billion USD) in circulation within three years.

Current market capitalization is around $8 million following the October launch.

Morpho’s integration enables on-chain loans and borrowing denominated in JPY for qualified users.

Previously, the protocol operated exclusively with USD-pegged stablecoins, including USDC and USDT.

Steakhouse Financial, managing over $390 million in USDC vaults on Morpho, will oversee JPYC lending markets.

Why it matters

The integration opens up possibilities for yen carry trade strategies within decentralized finance.

Traditional carry trades involve borrowing Yen at low interest rates to invest in higher-yield USD assets.

Bank of Japan rates remain structurally below U.S. Federal Reserve rates despite recent hikes.

JPYC enables cross-currency on-chain strategies that were previously limited to traditional finance.

USD stablecoins currently dominate DeFi lending, with USDC and USDT accounting for the majority of activity.

The addition of regulated JPY liquidity creates room for sophisticated currency positions as more fiat currencies move on-chain.

This development indicates growing institutional demand for non-dollar stablecoin infrastructure within DeFi protocols.

JPYC differs from previous yen-linked tokens through regulatory compliance and FSA licensing as a funds transfer service provider.

The stablecoin operates without transaction fees and generates revenue from interest on Japanese government bond reserves.

Multichain deployment allows interoperability with existing DeFi applications and exchanges worldwide.