MV Capital - Japan Blockchain Foundation Advances EJPY Yen Stablecoin for Corporate Payments

Japan’s stablecoin sector is heating up fast. The Japan Blockchain Foundation has approved plans for EJPY, a new yen-backed token designed for large-scale business use on Japan Open Chain and Ethereum

Japan continues building momentum in regulated digital payments. The Japan Blockchain Foundation formally greenlit development of EJPY, a yen-pegged stablecoin structured as a trust-type electronic payment instrument. This move positions the project to handle high-value transfers without the restrictions that limit earlier yen stablecoins.

EJPY will launch first on Japan Open Chain (JOC),an Ethereum-compatible Layer 1 blockchain operated by a consortium of 14 Japanese companies including NTT Communications, Dentsu, and Nethermind. Plans include native Ethereum support from the outset. The foundation targets circulation within the current fiscal year, ending March 2027.

Trust Structure Unlocks Larger Transactions

Under Japan’s payment services rules, standard electronic payment instruments face a 1 million yen per-transaction cap. EJPY’s Type III trust-based framework removes this ceiling, making it suitable for corporate settlements, institutional transfers, remittances, and Web3 applications.

The foundation will act as settlor while licensed trustee businesses manage assets separately. Discussions with potential trustees are underway covering issuance, redemption, compliance, and system design. No final launch date or distribution partners have been confirmed yet.

Key Features of EJPYYen-pegged with full reserves in trust structure
Exempt from standard transaction value limits
Primary deployment on Japan Open Chain with Ethereum compatibility
Focus on B2B payments, digital asset settlements, and real-world demand
Expansion to additional chains possible in future phases

Crowded Field Signals Strong Domestic Interest

This announcement adds to several active yen stablecoin initiatives in Japan:

JPYC: Launched October 2025 as the first licensed yen stablecoin under Type II framework. It has already issued over 1 billion yen in tokens and targets significant growth.
JPYSC: SBI Holdings and Startale Group project using similar trust structure, on track for Q2 2026 launch.
Megabank Initiative: Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho are developing their own yen (and dollar) stablecoin through joint efforts with proof-of-concept testing already completed.

Hiroaki Inaba, CEO of the Japan Blockchain Foundation, emphasized the goal of creating reliable infrastructure that Japanese enterprises can trust for blockchain applications.

Strategic Focus on Business Use Cases

Japan Open Chain validators and the foundation are prioritizing practical B2B applications. EJPY aims to facilitate faster, lower-cost settlements between companies while maintaining full regulatory compliance. The project stresses generation of transactions driven by genuine economic demand rather than speculation.

Japan Open Chain continues expanding its validator set toward 21 members. Its native token recently gained a listing on domestic exchange Zaif, strengthening the ecosystem.

Market Context: Since stablecoin regulations took effect in 2023, Japanese institutions have moved quickly to establish positions in digital payments. The combination of blockchain foundations, major banks, and fintech groups signals broad confidence in tokenized yen as a tool for modern financial infrastructure.

While specific timelines remain subject to regulatory approvals and trustee agreements, the pace of development shows Japan’s determination to lead in regulated Asian stablecoin markets. EJPY joins a rapidly expanding group of projects that could reshape how yen moves in both domestic and cross-border business.