DeltaForesight Announces Completion of 324 Million Yen Financing to Develop Over-Collateralized Yen Stablecoin JPYdf

Coin Circle (120btC.coM): On the 25th, Beijing time, DeltaForesight officially disclosed that it has completed a total of 324 million yen in early financing. This round of funding was raised using the J-KISS type new stock warrants model, led by Coral Capital, with participation from FFG Venture Business Partners, Decima Fund, Animoca Brands Japan, and HashPort. The funds raised will be specifically invested in the development of DeFi protocols, external security audits, risk control system construction, and ecosystem expansion.

The organization is currently focused on building an underlying architecture called "JPY DeFi." Unlike traditional fiat-backed stablecoin models, this system allows users to pledge mainstream crypto assets or stablecoins to borrow crypto asset-backed stablecoins JPYdf that are pegged to the value of the yen. This move aims to direct the global on-chain liquidity currently settled in USD towards a decentralized financial lending and trading market priced in yen.

Restructuring On-Chain Yen Liquidity

Currently, the DeFi sector is still dominated by USD assets such as USDT and USDC. For local Japanese users who use yen as their accounting and tax base currency, using USD stablecoins as a lending medium not only requires them to endure the inherent volatility of the crypto market but also exposes them to exchange rate risk between yen and USD.

To address this pain point, DeltaForesight has not followed the traditional fiat reserve path. The traditional model requires issuers to hoard an equivalent amount of fiat currency in commercial banks before minting tokens on-chain, which essentially just maps existing domestic fiat currency onto the chain, limited by the issuer's balance sheet and unable to effectively attract global funds.

In contrast, the underlying logic of JPY DeFi is closer to MakerDAO's debt collateral model. Overseas holders do not need to pre-exchange real fiat currency; they only need to deposit BTC, ETH, or USD stablecoins into a smart contract to mint and generate on-chain liabilities denominated in yen through an over-collateralization mechanism. This mechanism breaks the physical limitations of national borders, allowing digital assets worldwide to transform into a source of yen liquidity.

Clarifying Non-Compliant Fiat Attributes

In terms of risk control mechanisms, JPYdf strictly adheres to the over-collateralization minting principle. Users can obtain yen liquidity while retaining exposure to their original assets; however, if the price of the underlying collateral drops sharply, causing the collateral ratio to fall below the safety threshold set by the smart contract, the relevant positions will face forced liquidation. The management team emphasizes that all collateral, issuance, and liquidation rules are deployed on-chain for public verification, thereby avoiding the opaque operations and credit default risks of centralized issuing institutions.

It should be clarified that the protocol is still in the research and development phase before mainnet deployment, and the exact interaction conditions and launch timeline have not yet been finalized. The official statement particularly notes that JPYdf is designed as a "value-stable target" crypto asset and is not a fiat withdrawal certificate backed by a single institution. According to Japan's Fund Settlement Act, this token does not represent yen deposits or legal monetary claims, and its value peg to the yen is merely a system operation goal, without providing absolute price stability guarantees or rigid repayment commitments.

Filling the Pricing Gap for Asian Currencies on the Chain

Regarding this capital layout, James Riney, founding partner of Coral Capital, pointed out that there have been numerous attempts to bring the yen on-chain in the past, but due to stringent customer identity verification (KYC) reviews and fiat reserve bottlenecks, the liquidity of related assets has never been able to scale. DeltaForesight's breakthrough lies in directly using globally accepted crypto assets as credit collateral, fundamentally bypassing the constraints of traditional financial channels.

Ingi Kim, CEO of the Korean investment firm Narrative, provided an assessment from a pan-Asia Pacific market perspective. He believes that although current on-chain liquidity exhibits a borderless characteristic, the pricing power is almost entirely monopolized by the USD. There is a genuine demand in the market for the introduction of the yen, a heavyweight Asian currency, as an on-chain pricing benchmark. This blue ocean is not limited to Japan but will also extend to a broader cross-border financial ecosystem.