Japan’s Largest Deposit Holder to Issue Something Similar to Stablecoin

Japan Post Bank plans to introduce a digital deposit currency leveraging DCJPY for security token settlements. The aim is to enhance financial infrastructure efficiency and explore broader applications across the Japanese economy.

According to Nikkei, Japan Post Bank is preparing to introduce a digital deposit currency for its account holders by 2026.

DCJPY Exchange Rate Pegged at 1 Yen

The initiative will use DCJPY, developed by DeCurret DCP under the Internet Initiative Japan (IIJ) Group, to settle digital securities and other financial products. The bank is also considering using the system for local government subsidy payments.

The planned DCJPY system will allow depositors to link a dedicated account to their existing savings accounts and exchange balances at a one-to-one rate with the yen. As Japan’s largest deposit institution, Japan Post Bank holds around 120 million accounts with deposits totaling approximately $1.36 trillion, creating a substantial potential base for DCJPY issuance. This could significantly expand the currency’s presence within Japan’s digital asset ecosystem.

Unlike stablecoins like recently authorized JPYC, DCJPY represents what regulators define as a “tokenized deposit.” Stablecoins are generally issued on public blockchains and accessible globally, while tokenized deposits are issued exclusively on permissioned blockchains managed by regulated financial institutions.

DeCurret DCP, a subsidiary of DeCurret Holdings and backed by IIJ as its largest shareholder, officially launched DCJPY one year ago, in August last year. In September of the same year, DeCurret raised approximately ¥6.35 billion to strengthen the DCJPY business infrastructure.

Interoperability Challenges Ahead

Initially, Japan Post Bank intends to use DCJPY primarily for security token settlements. However, due to regulatory and safety considerations, security tokens are currently issued on permissioned blockchains, so interoperability across platforms remains a critical challenge.

Japan’s regulatory progress for stablecoin has accelerated in 2025, marked by JPYC receiving the country’s first stablecoin license earlier this year. With Japan Post Bank’s entry into blockchain-based settlement, the nation’s largest financial institutions are beginning to embrace distributed ledger technology more seriously. Analysts suggest this could intensify competition in Japan’s fintech industry as adoption expands.