TOKYO, Japan Post Bank has announced plans to roll out a digital yen by the end of fiscal 2026, in a move aimed at enhancing convenience for its vast depositor base and further modernising the country’s financial infrastructure.
The initiative underscores the growing momentum among Japanese financial institutions and corporates to embrace blockchain technology as a way to improve the speed, transparency, and efficiency of financial transactions.
Japan Post Bank, one of the country’s largest deposit-taking institutions with approximately 190 trillion yen (US$1.29 trillion) in deposits, will introduce a digital currency known as DCJPY, developed by DeCurret DCP. The announcement was made in a joint statement released on Monday by the two companies.
Once operational, depositors will be able to seamlessly convert their yen holdings into DCJPY, enabling instant settlement of digital securities, tokenised assets, and other blockchain-based instruments. This innovation is expected to provide customers with faster, more secure and transparent transaction options compared to traditional systems.
“Our tokenised deposit currency under consideration will allow for instant and highly transparent transactions through blockchain technology,” Japan Post Bank and DeCurret DCP, a subsidiary of Internet Initiative Japan, said in their statement.
Unlike stablecoins—which are privately issued cryptocurrencies typically pegged to fiat money—DCJPY is classified as a blockchain-based deposit currency fully backed at a 1:1 ratio by yen deposits. This means every unit of DCJPY in circulation will correspond to an equivalent amount of fiat yen held in reserve, ensuring stability and reducing risks associated with volatility.
The planned launch of DCJPY places Japan Post Bank among the key players spearheading Japan’s transition into the era of digital finance. It also reflects broader government and industry efforts to strengthen the nation’s digital currency ecosystem in anticipation of the Bank of Japan’s potential issuance of a central bank digital currency (CBDC) in the future.
With Japan’s ageing population increasingly turning to digital platforms and the financial sector under pressure to enhance efficiency, the introduction of DCJPY could accelerate the adoption of tokenised financial products and services in the domestic market.
($1 = 147.3300 yen)
