Japan Post Bank to Launch DCJPY Token by 2026

Japan Post Bank intends to launch a tokenized asset network by FY2026, enabling holders of its 120 million accounts to exchange savings for a token that simplifies securities transactions, as reported by Nikkei. The bank will integrate into the DCJPY network, which issues tokens redeemable at 1 yen by partner banks. The DCJPY token was developed by DeCurret DCP, supported by MUFG, Japan's largest financial institution, with the network unveiled in August 2024. Depositors will be able to instantly convert their savings into DCJPY tokens, which can be utilized to buy tokenized securities projected to yield returns between 3% and 5%. This initiative aims to attract younger consumers by reducing transaction settlement times from days to nearly instantaneous. DeCurret DCP is also in discussions with local governments to facilitate payments of subsidies and grants via DCJPY, thereby digitizing local operations. Currently, GMO Aozora Net Bank is the only confirmed minting bank for DCJPY, which has undergone various proof-of-concept tests. Distinguishing itself from a stablecoin, the deposit token operates on a permissioned network and directly represents bank deposits. Additionally, Nikkei has reported that Japan's Financial Services Agency intends to approve its first domestically regulated yen-backed stablecoin this fall, to be issued by the Tokyo-based fintech company JPYC. Japan is also contemplating revisions to its tax code to foster crypto trading and pave the way for official ETF offerings.