Japan Post Bank is set to launch a digital deposit currency utilizing DCJPY for secure token settlements. This initiative aims to improve financial infrastructure efficiency and explore wider applications within the Japanese economy.
As reported by Nikkei, Japan Post Bank is gearing up to roll out a digital deposit currency for its account holders by 2026.
DCJPY Exchange Rate Fixed at 1 Yen
The project will utilize DCJPY, created by DeCurret DCP under the Internet Initiative Japan (IIJ) Group, for settling digital securities and various financial products. The bank is also exploring the possibility of using this system for local government subsidy payments.
The proposed DCJPY system will enable account holders to link a dedicated account to their current savings accounts, exchanging balances at a one-to-one ratio with the yen. Being Japan’s largest deposit institution, Japan Post Bank manages approximately 120 million accounts with total deposits amounting to around $1.36 trillion, presenting a significant potential for DCJPY issuance. This could notably increase the currency’s footprint in Japan’s digital asset landscape.
In contrast to stablecoins like the recently approved JPYC, DCJPY is classified by regulators as a “tokenized deposit.” Stablecoins are typically issued on public blockchains and available globally, while tokenized deposits are issued solely on permissioned blockchains overseen by regulated financial bodies.
DeCurret DCP, a division of DeCurret Holdings and supported by IIJ as its largest stakeholder, officially introduced DCJPY one year ago in August. In September of that same year, DeCurret secured roughly ¥6.35 billion to bolster the DCJPY business framework.
Interoperability Challenges Ahead
Initially, Japan Post Bank plans to deploy DCJPY mainly for security token settlements. However, given regulatory and safety factors, security tokens are currently issued on permissioned blockchains, making interoperability between platforms a significant challenge.
Japan’s regulatory advancements for stablecoins have gained momentum in 2025, highlighted by JPYC obtaining the country’s first stablecoin license earlier this year. With Japan Post Bank entering blockchain-based settlements, major financial institutions in the country are starting to take distributed ledger technology more seriously. Analysts predict this may heighten competition within Japan’s fintech sector as adoption grows.
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