Japan Post Bank to Offer Blockchain-Based DCJPY to Millions of Depositors by Fiscal 2026
DCJPY is a blockchain-based deposit currency that is fully backed 1:1 by fiat yen. It is different from stablecoins, a type of cryptocurrency.
(Photo: SBR)
TOKYO, Sept. 2, 2025 — Japan Post Bank has announced the launch of a digital yen by the end of fiscal 2026 to facilitate digital financial transactions for its depositors, Reuters reported.
The announcement by the postal giant, which holds almost 190 trillion yen ($1.29 trillion) in deposits, underscores an increasing trend of domestic entities tapping blockchain technology to streamline financial transactions.
Japan Post Bank, in which the Japanese government holds a stake, will introduce DCJPY, a digital currency developed by DeCurret DCP, for its depositors, the two companies said in a statement on Monday.
Soon after its launch, Japan Post Bank's depositors can convert their yen into DCJPY for instant transactions of digital securities and other blockchain-based assets.
"Our tokenized deposit currency under consideration will offer instant, transparent transactions using blockchain technology," Japan Post Bank and DeCurrent DCP, which is an arm of Internet Initiative Japan, said in the statement.
DCJPY is a blockchain-based deposit currency that is fully backed 1:1 by fiat yen. It is different from stablecoins, a type of cryptocurrency designed to maintain a constant value by being pegged typically to a fiat currency.
Facts About Tokenized Yen You Should Know
Blockchain Adoption: The move to launch tokenized Yen is a testimony to Japan's largest retail banking commitment to tokenized finance.
The digital Yen will potentially accelerate blockchain adoption across Japan’s financial sector. The bank's government support and a well-spread branch network make it a connecting link between traditional banking and digital asset infrastructure.
The advent of DCJPY is in sync with broader Japanese digital currency initiative, including the Bank of Japan's ongoing central bank digital currency trials. The private sector initiative could provide real-world data on adoption patterns and operational challenges ahead of any national digital yen launch.
Government Subsidy Distribution: Besides retail applications, Japan Post Bank plans to explore DCJPY for government subsidy distribution, enabling automatic delivery of public funds to citizen accounts. This use case could streamline administrative processes while ensuring transaction transparency through blockchain records.
The announcement comes at a time when Japan's traditional bond market faces pressure, with insurers and pension funds becoming net sellers of long-term government bonds in 2025. Tokenized yen infrastructure could create new demand channels for yen-denominated assets and support market stability.
Different from Cryptocurrency: DeCurret DCP's permissioned blockchain differentiates DCJPY from cryptocurrency stablecoins by operating under banking regulations rather than digital asset frameworks.
The 2026 timeframe gives sufficient time for Japan Post Bank to create the necessary infrastructure and regulatory approvals for what is touted to be one of the world's largest tokenized deposit programs by customer base and asset backing.
How DCJPY is Reshaping Tokenized Finance in Asia
The strategic investors look at DCJPY’s launch as a watershed moment in Asia’s digital finance evolution. The tokenization of ¥190 trillion in deposits could create a ripple effect, attracting fintech startups, asset managers, and infrastructure providers to build on Japan’s blockchain ecosystem.
Collaborations across borders such as Japan’s regulatory alignment with Singapore’s Monetary Authority of Singapore (MAS) further enhance the appeal of DCJPY as a regional standard for tokenized assets.
However, the initiative is confronted with many challenges.
In the nascent stage, DCJPY’s focus on restricted platforms may limit its interoperability with global blockchain networks.
However, as Japan’s FSA builds on the momentum to refine its framework, these barriers are expected to vanish, paving the way for broader adoption.
Japan’s digital yen revolution is not restricted to domestic financial inclusion but a roadmap for how regulated digital currencies can transform financial infrastructure. By investing in DCJPY and its ecosystem, stakeholders can position themselves at the forefront of a $19 trillion market, leveraging blockchain to bridge traditional banking and decentralized finance.
With emergence of Asia as the global hub for tokenized assets, Japan’s approach offers a compelling model for stability, scalability, and strategic growth.
Notably, JAPAN POST BANK Co., Ltd. is a bank in the Japan Post Group, which was established in October 2007. The Bank provides comprehensive financial services to a wide range of individual customers, mostly through a nationwide network of post offices, with the aim of becoming “the most familiar and trusted bank.”
Once launched, Japan Post Bank’s depositors can convert their yen into DCJPY for instant transactions of digital securities and other blockchain-based assets.
Inputs from Saqib Malik
Editing by David Ryder
