Japan Post Bank Prepares Digital Currency Rollout
Japan Post Bank, the country’s largest deposit institution with $1.36 trillion in savings across 120 million accounts, is preparing to issue a digital deposit currency by 2026. According to Nikkei, the new instrument will leverage DCJPY, a blockchain-based system developed by DeCurret DCP under the IIJ Group, with the goal of enhancing efficiency in security token settlements and broader financial services.
Unlike traditional stablecoins, which regulators classify as global instruments issued on public blockchains, this initiative represents a “tokenized deposit.” Such tokens will be issued only on permissioned blockchains and managed by fully regulated financial institutions.
Pegged to the Yen at 1:1
The system will allow depositors to link a DCJPY account to their existing savings accounts, with balances exchanged at a strict one-to-one rate with the yen.
This framework mirrors stablecoins like JPYC, which earlier this year became Japan’s first officially licensed stablecoin. However, Japan Post Bank’s DCJPY will remain within a tightly regulated ecosystem.
Officials hinted at further applications beyond securities, including local government subsidy payments, signaling an ambition to integrate DCJPY into everyday public and private sector operations.
Building on DCJPY’s Momentum
DeCurret DCP, which launched DCJPY in August last year, has rapidly expanded its infrastructure. Just one month later, in September, the firm raised ¥6.35 billion to strengthen the platform’s technical and regulatory foundations.
A spokesperson for DeCurret noted that DCJPY was designed to support “real-world applications of blockchain settlement while ensuring regulatory oversight.” The system has already been tested in security token markets, where it proved capable of streamlining back-office settlements.
Interoperability Challenges Remain
For now, DCJPY will be used primarily for security token settlements, but regulatory and safety considerations present hurdles. Since most security tokens in Japan are issued on permissioned blockchains, ensuring interoperability across multiple networks will be a major challenge for banks and financial institutions.
Industry analysts argue that the Post Bank’s move will spark competition in Japan’s fintech sector. As one analyst put it:
Japan’s Digital Finance Landscape Heats Up
Japan has been accelerating its regulatory framework for digital assets. In 2025, the Financial Services Agency (FSA) authorized JPYC as the country’s first licensed stablecoin, providing clarity for issuers. Now, with Japan Post Bank’s entry, the stage is set for mainstream adoption of blockchain-based money.
By combining government-approved stablecoins with bank-issued tokenized deposits, Japan could emerge as a leader in regulated digital finance, offering both transparency and scale.
