- Japan Post Bank will offer DCJPY tokens in 2026 to 120M accounts for digital settlement.
- DCJPY allows instant securities settlement and offers 3–5% returns on digital assets.
- Backed by banks, DCJPY runs on a permissioned blockchain with regulatory oversight.
Japan Post Bank is preparing to offer tokenized deposits to its customers as part of a broader effort to modernize Japan’s financial infrastructure. Beginning in fiscal year 2026, the bank plans to allow deposit holders to convert traditional savings into DCJPY, a deposit token developed by Japanese fintech firm DeCurret DCP. The token will be redeemable for one yen by partner banks and will operate on a permissioned blockchain network.
With approximately 120 million accounts totaling around $1.29 trillion in deposits, Japan Post Bank is the country’s largest depository institution. The bank’s move to enable DCJPY conversion will improve settlement efficiency, particularly for tokenized securities transactions. These securities are expected to offer returns between 3% and 5%, and the new system aims to reduce transaction settlement times from several days to instant.
Token Design and Regulatory Clarity
DCJPY is a direct deposit at a bank, unlike other conventional stablecoins, and is not supported by third-party assets. It also uses a permissioned blockchain, which means it is regulated and complies with Japanese banking standards. Such a setup provides an additional sense of trust and legal clarity that regulators and institutions are more inclined to, than unregulated digital tokens.
DeCurret DCP, the creator of DCJPY, has received backing from several major financial institutions, including Mitsubishi UFJ Financial Group (MUFG). The platform was officially announced in August 2024 and is currently supported by more than 60 corporations. Among them are Japan Post Bank’s parent company, Japan Post Holdings, Daiwa Securities Group, and East Japan Railway.
GMO Aozora Net Bank is the only publicly named minting bank on the DCJPY network so far. However, several proof-of-concept trials have already been conducted, which include simulated interbank transfers, securities settlement, and the distribution of government subsidies. Total test transactions have exceeded ¥2 billion in value, according to DeCurret’s trial reports.
Modernizing Retail Finance and Public Services
It is observed that integration of DCJPY is one of the major steps towards the revival of retail financial activity. Japan Post Bank is optimistic that the token will be more attractive to young users, who prefer digital-first financial solutions. Further, the bank plans to convert inactive savings accounts into investment instruments by offering near-instant settlement of investment products.
Beyond retail finance, DCJPY is also being considered for public sector use. DeCurret DCP is in discussions with local governments about using the token for distributing subsidies and grants. If implemented, this could significantly streamline administrative processes and boost efficiency in municipal financial operations.
Meanwhile, the Financial Services Agency of Japan plans to approve the first yen-denominated, domestically regulated stablecoin in the country. Under the existing rules of e-money, JPYC, a Tokyo-based fintech company, has already processed more than ¥20 billion worth of transactions with its prepaid token services, and new regulations are expected later this year.
Related: Japanese Nail Salon Invests Billions in Bitcoin Strategy
Broader Digital Finance Context in Japan
Amid the radical restructuring of its financial regulations, the policymakers in Japan are planning to modify the taxation laws, thus making them more conducive to cryptocurrency trading and investment in digital assets. Among the proposals being considered would exclude unrealized gains on corporate digital asset holdings, to incentivize domestic Web3 and blockchain startups.
In the meantime, the broader global tokenization trend of real-world assets is picking up. A collaboration between Boston Consulting Group and Ripple predicts that the global market of this kind of asset will rise to $600 billion in 2025 and to 18.9 trillion in 2033. Planned projects involving the implementation of DCJPY put Japan at the point of this revolution.
The size of Japan Post Bank places it at the center of the testing and implementation of regulated digital currency infrastructure, and its foray into the tokenized deposit arena is a significant move toward incorporating blockchain technology into the highly regulated banking industry in Japan. By adopting DCJPY, a significant proportion might minimize operating costs, and financial interactions between two or more sectors may be facilitated smoothly.
