Japan Blockchain Foundation Eyes EJPY Launch This Year To Support Large-Scale Payments Without Remittance Limits

Japan’s race to build regulated digital yen infrastructure is picking up pace, with the Japan Blockchain Foundation preparing to launch a new yen-backed stablecoin across both its domestic blockchain network and Ethereum.

The organisation behind Japan Open Chain announced plans to issue EJPY, a Japanese yen-pegged stablecoin designed for business payments, digital asset settlements and Web3 transactions.

The token will first focus on activity within Japan Open Chain before expanding to broader use cases across multiple blockchains.

EJPY Targets Business Payments And Web3 Transactions

EJPY is being developed as a trust-type stablecoin, a structure that allows reserves to be held in trust accounts managed by trustees.

The Japan Blockchain Foundation will act as the settlor and said discussions are ongoing with potential trustees ahead of the launch.

The foundation said the stablecoin is intended to support “transactions based on real demand on JOC, including B2B settlements, digital asset settlements, remittances, and payments in various Web3 services.”

Japan Open Chain, commonly known as JOC, is an Ethereum-compatible Layer 1 blockchain operated by a consortium of Japanese companies.

The network currently runs with 14 validators, including Dentsu Inc., NTT Communications and SBINFT Co.

The foundation also signalled that EJPY could become multi-chain in the future, allowing the token to move beyond JOC and Ethereum as adoption grows.

Why Japan’s Stablecoin Rules Matter

Japan has emerged as one of the few major economies with a clear legal framework for stablecoins.

Since authorities introduced stablecoin regulations in 2023 and approved JPYC as the country’s first yen-backed stablecoin, competition among financial and blockchain firms has accelerated.

According to local outlet NADA News, non-bank stablecoin issuers in Japan can choose between two regulatory structures: a fund transfer service provider model or a trust-type model.

Earlier stablecoins such as JPYC used the fund transfer model, which limits remittances to 1 million yen per transaction.

Trust-type stablecoins, however, are not subject to the same transfer ceiling, making them more suitable for larger settlements and corporate payments.

That distinction is becoming increasingly important as Japanese firms explore blockchain-based settlement systems for domestic and cross-border transfers.

Ethereum And Japan Open Chain Dual Launch

By launching EJPY on both JOC and Ethereum, the foundation is attempting to bridge Japan’s domestic blockchain ecosystem with the wider global crypto market.

The project’s early focus will remain on generating transaction activity within Japan Open Chain, particularly for enterprise use cases such as supplier payments, tokenised asset settlements and remittances.

The dual-chain strategy could also help attract Web3 developers and businesses already operating on Ethereum while encouraging them to use Japan Open Chain for local transactions.

Major Japanese Firms Push Deeper Into Stablecoins

The EJPY announcement adds to a growing list of stablecoin initiatives emerging from Japan’s financial and technology sectors.

Earlier this year, SBI Holdings introduced its trust-type stablecoin JPYSC through a partnership with Startale Group.

At the same time, Japan’s three major banking groups, MUFG, SMBC and Mizuho, have been developing stablecoin and tokenised deposit pilots as interest in digital payments continues to grow.

Further details on EJPY’s launch schedule and issuance process have yet to be confirmed.

However, NADA News reported that the foundation is aiming to begin issuance sometime this year.