Japan to Launch Yen Stablecoin for Business Payments on Blockchain Network

Japan is preparing to expand its blockchain-based payment ecosystem with the launch of a new Japanese yen pegged stablecoin called EJPY, aimed at supporting business-to-business (B2B) settlements and digital payments.

The Japan Blockchain Foundation announced that EJPY will be issued as a trust-type stablecoin on both Ethereum and Japan Open Chain (JOC), an Ethereum-compatible Layer 1 blockchain operated by a consortium of Japanese companies.

The foundation will act as the settlor for the stablecoin and said discussions are currently underway with potential trustees to support the issuance process.

EJPY Designed for B2B Payments and Web3 Services

According to the foundation, EJPY is expected to support a wide range of real-world uses, including B2B settlements, digital asset payments, remittances, and Web3-related services. The project is also considering expanding to multiple blockchain networks in the future to improve compatibility.

Japan Open Chain is backed by major Japanese enterprises and currently operates with 14 validators, including companies such as Dentsu Inc., NTT Communications and SBINFT Co..

Japan’s Stablecoin Market Continues to Grow

Japan introduced stablecoin regulations in 2023, allowing licensed firms to issue regulated digital currencies. Earlier projects such as JPYC used a fund transfer model that limits remittance amounts to 1 million yen per transaction. However, EJPY’s trust-type structure avoids those restrictions, making it more suitable for larger business transactions.

Although an exact launch timeline has not been confirmed, local reports suggest the foundation hopes to begin issuing EJPY later this year. Meanwhile, major financial institutions in Japan are also developing their own stablecoin and tokenized deposit projects as interest in digital payments continues to grow.