Japan Blockchain Foundation has received the green light from regulators to introduce EJPY, a new trust-based yen stablecoin. This marks the fourth stablecoin initiative in Japan within six months, following the likes of JPYC and JPYSC. The country’s major financial institutions—Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho—are also gearing up to launch their own stablecoins by 2025. These banks serve a large client base both locally and abroad, demonstrating Japan’s commitment to expanding its digital currency landscape.
What Sets EJPY Apart?
Regarded as a “Type III electronic payment instrument”, EJPY offers greater flexibility and security compared to other models. While traditional Type I payment instruments have a cap of 1 million yen per transaction, EJPY is exempt from such limitations. This makes it particularly attractive for large-scale corporate transactions and digital asset exchanges.
The stablecoin is set to debut on the Japan Open Chain (JOC), a blockchain compatible with Ethereum, featuring fourteen institutional validators. The Japan Blockchain Foundation aims to have EJPY operational on this platform by March 2027. From the outset, it will be compatible with Ethereum to meet market demands effectively.
How are Customer Funds Secured?
EJPY operates within a trust-based framework where the Foundation is the principal project backer. Funds are managed separately by licensed trust companies, ensuring user assets are isolated from the issuer’s. Discussions with potential trust partners are ongoing, covering issuance, redemption, asset management, and compliance, with final regulatory nods still pending.
In parallel, SBI Holdings and the Startale Group plan to release JPYSC by 2026, navigating a similar regulatory path. Their initiative involves Shinsei Trust & Banking, an SBI subsidiary, as the issuer.
How Do Other Stablecoin Efforts Compare?
JPYC was Japan’s inaugural licensed yen stablecoin when it launched in 2025. Utilizing a stricter Type II transfer model, it has already issued over 1 billion yen in tokens. JPYC aspires to reach a 1 trillion yen issuance milestone within three years, underscoring its growth.
Japan’s largest banks launched a collaborative stablecoin effort in 2025, testing both yen and dollar-pegged tokens within the same framework. Initial trials took place in 2026, supported by Japan’s Financial Services Agency.
“EJPY has been designed to serve diverse needs, from commercial payments to digital asset transfers. The Foundation is targeting transaction volumes rooted in actual market use,” stated a spokesperson from the Foundation.
Hiroaki Inaba, the Foundation’s CEO, emphasized the strategic development of Japan Open Chain to provide a secure blockchain platform for Japanese enterprises. EJPY is expected to redefine commercial transactions and expand Web3 services, showcasing Japan’s diversification in the stablecoin ecosystem. Recent developments highlight the nation’s accelerating stablecoin initiatives.
