Japan Post Bank , the country's largest postal financial institution, announced that it will launch a blockchain-based digital currency by the end of fiscal 2026, marking a significant step toward modernizing Japan's financial infrastructure . The bank, which holds approximately 190 trillion yen ($1.29 trillion) in deposits, will introduce " DCJPY " to enable instant digital transactions for its customers.
The digital currency will be fully backed 1:1 by fiat yen and will allow depositors to convert their savings into blockchain-based tokens through a linked digital wallet, according to Reuters. Customers can then use DCJPY for immediate settlement of digital securities, real estate investments, corporate bonds, and other blockchain-based assets.
Move reflects growing adoption of blockchain technology in Japanese banking sector
Japan Post Bank developed the digital currency in partnership with DeCurret DCP , a subsidiary of Internet Initiative Japan. The tokenized deposit currency differs from traditional stablecoins as it operates under Japan's deposit insurance protection system, providing additional security for users.
"Our tokenized deposit currency under consideration will offer instant, transparent transactions using blockchain technology," the companies stated. The service aims to reduce settlement costs and transaction times compared to conventional banking methods.
The bank also plans to facilitate faster distribution of government subsidies and benefits to citizens through the digital platform. Local governments are expected to utilize the system for more efficient public service delivery.
GMO Aozora Net Bank previously launched Japan's first commercial digital yen service in 2024, making Japan Post Bank the second major financial institution to adopt blockchain-based deposit currencies. The development highlights Japan's growing embrace of financial technology innovation while maintaining regulatory oversight and consumer protection measures.
The digital currency will be fully backed 1:1 by fiat yen and will allow depositors to convert their savings into blockchain-based tokens through a linked digital wallet, according to Reuters. Customers can then use DCJPY for immediate settlement of digital securities, real estate investments, corporate bonds, and other blockchain-based assets.
Move reflects growing adoption of blockchain technology in Japanese banking sector
Japan Post Bank developed the digital currency in partnership with DeCurret DCP , a subsidiary of Internet Initiative Japan. The tokenized deposit currency differs from traditional stablecoins as it operates under Japan's deposit insurance protection system, providing additional security for users.
"Our tokenized deposit currency under consideration will offer instant, transparent transactions using blockchain technology," the companies stated. The service aims to reduce settlement costs and transaction times compared to conventional banking methods.
The bank also plans to facilitate faster distribution of government subsidies and benefits to citizens through the digital platform. Local governments are expected to utilize the system for more efficient public service delivery.
GMO Aozora Net Bank previously launched Japan's first commercial digital yen service in 2024, making Japan Post Bank the second major financial institution to adopt blockchain-based deposit currencies. The development highlights Japan's growing embrace of financial technology innovation while maintaining regulatory oversight and consumer protection measures.
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