Japan's stablecoin landscape has a new contender. On May 13, 2026, regulators approved EJPY, a "Type III electronic payment instrument" that bypasses the 1 million yen ($6,700) per-transaction cap imposed on Type I instruments.
Trust Model Enables Large-Volume Transfers
EJPY is built on a trust structure: the Foundation acts as the project sponsor, while licensed trust companies independently manage customer funds, fully segregating user assets from issuer assets. The Foundation is in talks with several trust firms covering issuance, redemption, asset management, and compliance. EJPY will initially run onJapan Open Chain (JOC), an Ethereum-compatible Layer-1 blockchain validated by 14 Japanese institutions. The Foundation aims to circulate EJPY on JOC by the end of fiscal 2026 (March 2027), with Ethereum compatibility available from day one.
Bank and Trust Involvement Ensure Fund Segregation
Under the security framework, customer funds are held separately by licensed trust companies, preventing any commingling. A precise launch date and distribution partners depend on final regulatory clearance. SBI Holdings and Startale Group are pursuing a similar legal route—their JPYSC stablecoin will be issued via SBI's subsidiary Shinsei Trust & Banking, targeting a Q2 2026 release.
Previous Stablecoin Moves: JPYC and the Big Banks' Consortium
JPYC, Japan's first licensed yen stablecoin, debuted in October 2025 under a Type II fund transfer model with stricter transaction limits. To date, JPYC has issued over 1 billion yen ($6.3 million) and aims to reach 1 trillion yen ($6.6 billion) in cumulative volume within three years. Meanwhile, Japan's three largest banks have been collaborating on a stablecoin project since 2025, also testing a dollar-pegged version. Their first trial ran in March 2026 on the Progmat infrastructure, and the "Payment Innovation Project" reportedly enjoys official backing from the Financial Services Agency.
Foundation CEO Hiroaki Inaba stated that Japan Open Chain was built to provide a secure blockchain platform for Japanese businesses, and EJPY is expected to set a new standard for commercial payments, fund transfers, and Web3 services. These recent developments highlight the rapid diversification of Japan's stablecoin ecosystem.