Japan Blockchain Foundation has confirmed plans for EJPY, a yen-backed stablecoin set to launch on Japan Open Chain and Ethereum. The move adds fresh momentum to Japan’s regulated digital payments market, where major financial groups are already expanding tokenized currency and stablecoin infrastructure.
The structure matters. EJPY will use a trust-based model, and that gives it a regulatory advantage over some earlier Japanese stablecoin formats. Local outlet NADA News reported that trust-type stablecoins face fewer transaction limits than products issued under fund transfer service models. Earlier issuers such as JPYC used that transfer-service route, which caps individual remittances at 1 million yen per transaction. EJPY’s framework removes that ceiling, making it better suited for larger settlements and institutional transfers.
EJPY is aimed at settlements, remittances and Web3 payments
According to the foundation, EJPY is being designed for practical payment use cases across Japan’s blockchain market. The list includes B2B settlements, digital asset payments, remittances, and transactions tied to Web3 services. The organization also said compatibility could expand to additional blockchains over time. The official launch date has not been finalized, though NADA News said the foundation is targeting issuance later this year.
One of the launch networks, Japan Open Chain, is an Ethereum-compatible Layer 1 backed by a consortium of Japanese companies. The chain currently has 14 validators, including Dentsu Inc., NTT Communications, and SBINFT Co.. That gives EJPY an operating base inside an existing domestic blockchain network rather than a newly built environment.
Japanese banks and blockchain firms are expanding in parallel
Competition in Japan’s stablecoin market has picked up since regulators introduced formal stablecoin rules in 2023. Domestic financial firms are moving quickly to secure positions in digital payments. The report notes that SBI Holdings earlier this year launched trust-type stablecoin JPYSC through a partnership with Startale Group. At the same time, MUFG, SMBC, and Mizuho are involved in pilot programs covering stablecoins and tokenized deposits.
EJPY is entering a market that is already crowded with banks and blockchain operators chasing a role in Japan’s regulated digital asset economy. The foundation said discussions with potential trustees are still ongoing as the issuance framework takes shape. That leaves EJPY as a live contender in a fast-moving race around digital yen payment rails.