Japan Post Bank is reportedly planning to issue a blockchain-based digital yen backed by deposits, with the aim of increasing the efficiency of financial transactions for customers.
According to a report by Reuters, the bank said it intends to launch the tokenised yen in fiscal year 2026 using blockchain technology to prevent fraud.
The bank said the service will allow customers to open a digital wallet and convert their savings into the tokenised currency, with the aim of reducing costs for customers and enabling faster purchases of financial products.
In order to do that, the bank said it will introduce ‘DCJPY’, a digital currency developed by Japanese FinTech DeCurret DCP, for its depositors, the two companies said.
The digital currency will enable depositors to convert their yen into DCJPY to complete instant transactions of digital securities and other blockchain-based assets.
“Our tokenised deposit currency under consideration will offer instant, transparent transactions using blockchain technology,” Japan Post Bank and DeCurrent DCP said in a statement seen by Reuters on Monday.
Japan Post Bank, which has currently about 190 trillion yen or more than $1.2 trillion in deposits and whose shareholders include the Japanese government, added the move will also allow for faster distribution of government subsidies to citizens.
This move signals a growing trend among financial institutions to leverage blockchain technology to simplify financial transactions.
Japanese bank GMO Aozora Net Bank also launched a similar service last year, based on the digital yen, as part of a broader effort to digitise and regulate environmental securities, such as clean energy certificates, using DCJPY.
In China, Oversea-Chinese Banking Corporation (OCBC) has also recently announced it is leveraging blockchain to establish a US$1 billion US commercial paper (USCP) programme.
Through the initiative, the Singaporean bank will be able to unlock near-instant short-term US dollar financing capacity, enabling it to receive funds within minutes thanks to tokenised securities and on-chain funds.
OCBC confirmed on Tuesday that JP Morgan will act as the sole dealer for the programme through its Digital Debt Service application, built on the Kinexys tokenisation platform.
In US, Wyoming recently celebrated becoming the first public entity in the US to issue a blockchain-based stablecoin.
The Wyoming Stable Token Commission announced that the Frontier Stable Token (FRNT) will be fully backed by US dollars and short-duration treasuries, held in trust for the benefit of token holders.
It added that FRNT fortifies its stability with a legislatively-mandated remit to achieve two per cent overcollateralisation.
