Japan Post Bank says it will launch DCJPY

Japan Post Bank said that it will launch DCJPY, a blockchain-based digital yen backed by the Tokyo DeCurret DCP, an arm of Internet Initiative Japan, in 2026. The digital currency will be supported in a 1:1 ratio by yen deposits and will be linked to customers’ savings accounts. 

Japan Post Bank, a lender owned by the Japanese government holding at least 190 trillion yen in deposits, confirmed that it will introduce the DCJPY to enable individuals and corporate accounts to convert yen into DCJPY using an app. The lender revealed that the new system will allow for instant settlement of transactions that are more transparent and faster compared to traditional methods. 

DCJPY set to transform institutional settlements in Japan

According to Japan Post Bank, the DCJPY will allow customers to transact in digital securities, real estate, corporate bonds, and other blockchain-based assets. The lender plans to extend the service beyond non-fungible tokens (NFTS) and other financial tools by the end of 2026. Some officials have noted that the digital currency will allow local governments to distribute subsidies directly to citizens, expanding the scope of its potential.

Japan Post Bank eyes 2026 rollout of DCJPY deposit token for asset settlement

Japan Post Bank to roll out DCJPY tokenized deposits in 2026, enabling 120M accounts to trade securities instantly on a permissioned blockchain.https://t.co/G8BeWSqyks

— Pharos | Testnet Live (@pharos_network) September 1, 2025

The DCJPY project differs in structure from Stablecoins, cryptocurrencies that are pegged to fiat money. The digital asset is directly backed by deposits and covered by deposit insurance protection, allowing it to operate within a traditional banking framework while utilizing blockchain technology. 

The lender confirmed that the digital asset will offer instant, transparent transactions using blockchain technology, which allows for efficiency and structure. The lender has a user base of at least 120 million customers worldwide, offering them immediate access to the tokenized deposit system. The Japanese-backed bank controls approximately one-sixth of Japan’s total banking deposits, which raises the prospect of rapid nationwide adoption of the DCJPY. 

Some analysts say deposit-backed tokens will coexist with stablecoins

The introduction of DCJPY follows a trend of Japanese institutions investing in digital financial tools. In 2018, the Internet Initiative Japan introduced a virtual currency exchange tool in collaboration with major Japanese firms, including Tokyo Mitsubishi UFJ and Sumitomo Mitsui. In 2019, Mizuho Bank introduced J-Coin Pay in partnership with several financial institutions. J-Coin Pay was a QR code-based digital payment tool. GMO Aozora Net Bank recently introduced a digital deposit currency for commercial use.

The DCJPY follows a global trend of banks incorporating digital tokens into the system. JPMorgan Chase Bank introduced its digital currency last month, as reported by Cyptopolitan. The JPMorgan Deposit Token (JPMD) is a blockchain-based digital currency that was designed for institutional clients such as corporations and pension funds. In equal measure to DCJPY, it differs from Stablecoins such as USDC by operating under the traditional banking framework. The digital currencies offer clients benefits such as interest payments, potential deposit insurance, and easy integration with existing systems.

The JPMD is hosted on the Coinbase exchange platform, which offers speed and efficiency by combining public blockchain capabilities with the legal protection and compliance standards surrounding the banking system. Digital currencies such as the DCJPY and JPMD can also be used for cross-border settlements, treasury operations, and tokenized asset transactions while keeping the confidence of its backing system. 

Despite digital currencies offering access to the blockchain ecosystem, the permissioned nature of deposit tokens limits access to approved institutions, preventing broader retail and fintech adoption. The regulatory frameworks and the reliance on a single bank network also pose a growth challenge compared to stablecoins, which remain open and widely accessible to the cryptocurrency ecosystem. 

Some analysts have revealed that, ultimately, the two digital assets, Stablecoins and deposit tokens, are likely to coexist. Digital deposit-backed tokens will continue to serve high-value, regulated environments, while stablecoins serve the wider retail, fintech, and DeFi economies. 

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