Japan Advances Yen Stablecoin Plan with EJPY Launch Strategy

Japan Blockchain Foundation has confirmed plans to issue a yen-pegged stablecoin, EJPY, as part of a broader push to expand regulated digital payment infrastructure. The foundation, which operates the consortium behind Japan Open Chain, said the project will run on both Japan Open Chain (JOC) and Ethereum, with preparations now moving forward after the structure of a trust-type issuance model took shape.

The announcement marks a concrete step in Japan’s effort to integrate blockchain-based payments into enterprise use. The foundation stated that it has engaged in discussions with a prospective trustee, covering issuance, redemption, asset management, system requirements, and compliance with Japanese law.

Trust structure removes earlier limitations

EJPY will adopt a trust-type structure, with Japan Blockchain Foundation acting as the settlor. Under Japan’s regulatory framework introduced in 2023, this model differs from fund transfer service provider approaches used by earlier projects such as JPYC.

According to reporting from NADA News, fund transfer models in Japan face a remittance cap of 1 million yen per transaction. The trust-type structure does not carry that restriction. This distinction allows EJPY to support larger-scale transactions, particularly for corporate and institutional use.

The foundation emphasized that compliance remains central to the design. It stated that operations such as issuance, transfers, and redemption will take place under an appropriate legal and operational structure, including coordination with Electronic Payment Instruments Service Providers.

Focus on real-world business demand

The foundation positioned EJPY as infrastructure for real economic activity rather than speculative trading. In its statement, it said:

"The issuance and circulation of EJPY are expected to generate transactions based on real demand on JOC, including B2B settlements, digital asset settlements, remittances, and payments in various Web3 services."

This focus signals a broader shift in Japan’s digital asset strategy. Since stablecoin regulations came into effect in 2023, authorities have encouraged systems that align with existing financial rules and serve practical use cases.

EJPY will initially prioritize activity on Japan Open Chain, a public Layer 1 blockchain compatible with Ethereum. The network is operated by 14 validators, including Dentsu Inc., NTT Communications, and SBINFT Co., and is designed for enterprise-grade applications. The foundation indicated that validator participation may expand to 21 entities over time.

Dual-chain strategy targets domestic and global use

The project will also launch on Ethereum, which provides broader global connectivity. The foundation said it will consider multi-chain compatibility in the future to expand accessibility for both domestic and international users.

This dual-chain approach separates roles between platforms. Japan Open Chain supports domestic enterprise efficiency and compliance, while Ethereum enables interoperability with global blockchain ecosystems.

The foundation aims to move JOC beyond a technical platform into a payment infrastructure that handles the transfer of actual value. It described EJPY as a step toward building a system that supports settlements, remittances, and transactions across industries.

Competition grows in Japan’s stablecoin market

EJPY enters a market that has seen increased activity from both financial institutions and private companies. Following regulatory clarity in 2023, several initiatives have emerged.

SBI Holdings introduced its trust-type stablecoin JPYSC earlier this year through a partnership with Startale Group. In addition, Japan’s major banks, including MUFG, SMBC, and Mizuho, have explored tokenized deposits and stablecoin pilots.

Earlier projects such as JPYC helped establish initial demand but operated under stricter transaction constraints. The shift toward trust-type structures signals a move toward larger-scale financial applications.

Timeline and next steps remain open

The foundation has not confirmed a launch date for EJPY. It stated that details such as issuance timing, terms, and participating service providers will be announced after discussions with regulators and partners conclude. Issuance could begin within the year, though the foundation has not formally confirmed that timeline.

In its statement, the foundation framed the initiative as part of a long-term effort to build a seamless financial system. It said stablecoins are expected to serve as core infrastructure for next-generation finance, enabling value transfer on blockchain networks.

The organization will continue collaboration with trustees, financial institutions, local governments, and system partners as preparations advance. The goal remains to establish a compliant and widely usable digital payment infrastructure across Japan’s enterprise and public sectors.

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