Japan To Launch Yen Stablecoin For Business Payments

Japan Blockchain Foundation is preparing to issue a yen-backed stablecoin called EJPY, targeting business-to-business settlements, cross-border remittances, and digital asset payments. The token is set to launch on both Japan Open Chain and Ethereum, with multi-chain compatibility flagged as a possibility further down the road.

Trust Structure and Transaction Limits

EJPY is structured as a trust-type instrument, a legal design that allows it to sidestep key transaction size restrictions that apply to other forms of digital payment in Japan. That distinction matters in a corporate payments context, where high-volume settlement flows can quickly run into the caps attached to standard electronic payment instruments. Japan revised its Payment Services Act in June 2023, classifying fiat-pegged stablecoins as Electronic Payment Instruments, and the trust-type model sits at the top of the resulting three-tier framework, offering the broadest operational latitude for issuers targeting institutional use.

Japan Blockchain Foundation operates and manages the consortium behind Japan Open Chain, a business-oriented blockchain developed by trusted Japanese companies in compliance with Japanese law. Japan Open Chain is fully compatible with Ethereum and offers rapid transactions at low cost, with adequate decentralization, high security, and stability. Current validator participants include 14 companies, and the foundation operates the chain as an enterprise-oriented public blockchain jointly run by trusted Japanese companies in compliance with Japanese law.

Japan's Expanding Stablecoin Landscape

EJPY enters a market that is becoming increasingly crowded. JPYC, a Tokyo-based fintech firm, has launched a Japanese yen-backed stablecoin fully backed 1:1 by bank deposits and government bonds. Startale Group and SBI Holdings signed an MOU in December 2025 to jointly develop JPYSC, a trust-based Type 3 Electronic Payment Instrument not subject to the 1 million yen limit on domestic remittances. Its launch is planned for Q2 2026, following the establishment of all necessary compliance and regulatory frameworks.

The commercial rationale for yen-denominated stablecoins in B2B contexts is straightforward. Traditional international wire transfers carry significant costs and delays, while on-chain stablecoin settlement can reduce both dramatically. Japan Blockchain Foundation has said EJPY may gain additional chain support in the future, though no specific networks or timelines have been confirmed beyond the initial Japan Open Chain and Ethereum deployments.

Sources:
Japan Blockchain Foundation, official website
Japan Open Chain, stablecoin overview
Startale Group: SBI Holdings and Startale Partner on Yen Stablecoin