The Japan Blockchain Foundation announced plans to launch EJPY, a new yen-denominated stablecoin, on the Japan Open Chain and Ethereum networks. The project will use a trust-based model to facilitate business-to-business settlements, digital asset transactions, and payments for Web3 services under Japan's comprehensive stablecoin regulations established in 2023.
"The trust mechanism for EJPY is now in a crucial phase," the Japan Blockchain Foundation said in a statement, confirming it will serve as the project's settlor. The foundation is in discussions with potential trustees to handle issuance, redemption, and asset management, aiming for a launch in fiscal year 2026 to meet real business demand on the Japan Open Chain.
EJPY will initially deploy on Japan Open Chain, an Ethereum-compatible public blockchain supported by a consortium of 14 major Japanese corporations including Dentsu, NTT Communications, and SBINFT. A subsequent launch on the Ethereum mainnet is planned to provide access to global Web3 payment ecosystems, with potential for further multi-chain integrations in the future.
The project aims to bridge traditional finance and Web3 services, positioning Japan Open Chain as a comprehensive payment system. The choice of a trust-based structure is significant, as it may allow EJPY to operate without the 1 million yen per-transaction limit that applies to fund transfer-type stablecoins under Japanese law, making it a viable solution for high-value corporate payments.
A key feature of the EJPY stablecoin is its trust-type framework. This structure is critical for enterprise adoption, as stablecoins classified as fund transfers in Japan are subject to a statutory cap of 1 million yen (approximately $6,400) per transaction. By using a trust model, where the foundation acts as the settlor and partners with a trustee company, EJPY can be structured to handle unlimited transaction volumes.
This makes it suitable for the foundation's target use cases, which include large-scale B2B settlements and institutional digital asset trading. The foundation is currently finalizing the selection of a trustee and ensuring the operational framework complies with Japan’s financial regulations for trust asset management and technical systems.
EJPY is entering an increasingly competitive market for regulated, yen-backed stablecoins. Following Japan's implementation of stablecoin regulations in 2023, several major players have launched initiatives.
SBI Holdings, a major financial group, has partnered with Startale Group to develop JPYSC, another trust-based stablecoin focused on institutional payments. In October 2025, JPYC introduced Japan’s first yen-backed stablecoin collateralized by yen deposits. Furthermore, major banking institutions including MUFG, SMBC, and Mizuho have participated in stablecoin pilot programs facilitated by Japan's Financial Services Agency. The launch of EJPY adds another significant competitor to the race to build Japan's core blockchain-based payment infrastructure.
This article is for informational purposes only and does not constitute investment advice.
