Japanese Utility Kansai Electric Converts Loyalty Points into Yen Stablecoin JPYC on Polygon Platform

The cryptocurrency space has witnessed a significant leap as Japanese Utility Kansai Electric Power’s subsidiary introduces a feature that allows loyalty point conversion into cryptocurrency. MOACT, which is administered by a fully owned subsidiary of Kansai Electric Power, has announced on Thursday that its reward app users can now turn their loyalty points into the yen stablecoin, known as JPYC, on the Polygon platform, according to wallet developer HashPort.

The Revolutionary Feature

Said feature went live on July 30, and it opens up the opportunity for app users to trade ‘NORM points,’ which are earned by app users after completing social-impact missions in the app, for JPYC issued on the Polygon platform. These missions usually involve interacting with companies and municipalities actively involved in addressing social challenges. The JPYC then resides in the users’ HashPort Wallets and can be connected to DeFi platforms, thereby transforming a closed-loop Web2 rewards balance into an on-chain asset. Prior to this development, MOACT points could only be utilized for redeeming electronic gift certificates. JPYC, which is registered with Japan’s Financial Services Agency as the country’s first regulated yen-pegged stablecoin, is issued by JPYC Inc. and can be converted on a one-to-one basis for yen as an electronic payment tool under the Payment Services Act.

The Journey of MOACT

Operated by one of Japan’s largest utilities, Kansai Electric, which powers the Osaka region, MOACT was launched as an independent entity on July 1, with Yohei Koyama assuming the role of CEO. HashPort clarified that the point conversion scheme is designed in such a way that it doesn’t fall under Japan’s crypto exchange or electronic payment instrument trading licenses. Polygon Labs lauded the launch. This milestone signifies one of Japan’s most extensive utility companies turning loyalty points into on-chain payments on the Polygon network. It also highlighted JPYC’s role as an essential component of the default rails for stablecoin payments on its Open Money Stack. Although the price of POL, the native token of Polygon, remained nearly unchanged over the previous 24 hours at $0.071, as per CoinGecko, the launch has added to a series of JPYC integrations that are channelling Japan’s traditional loyalty point economy on-chain.

Journey of JPYC

On June 1, HashPort facilitated the first-ever conversion of Diners Club credit card points into JPYC for a Japanese credit card. Moreover, KDDI ran an in-store yen-stablecoin payment pilot with HashPort at Lawson convenience stores starting July 13. Polygon has emerged as the primary venue for such activity: the network claims to process more JPYC volume than all other chains combined, and 84% of JPYC holders use HashPort Wallet. For Kansai Electric, the benefit is evident on an operational level – loyalty points, a responsibility that often Expires unused, become an doorway for onboarding utility customers into on-chain payments. This innovative step points to the growing trend of integrating cryptocurrency into conventional business models. It’s an achievement that not only validates the versatility and potential of crypto-assets but also propels the standardization and mainstream adoption of digital currency. With other companies and enterprises expected to follow suit, the landscape of reward programs and loyalty points may be set for significant transformation.

Japanese Utility Kansai Electric Converts Loyalty Points into Yen Stablecoin JPYC on Polygon Platform

The Revolutionary Feature

The Journey of MOACT

Journey of JPYC

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