Japan Blockchain Foundation to Issue EJPY Yen Stablecoin

Japan Blockchain Foundation announced it will issue a trust-type Japanese yen stablecoin named EJPY on its Japan Open Chain (JOC) network and on Ethereum. The token is intended to support B2B settlements, remittances, digital-asset settlements and payments in Web3 services. The foundation will act as the settlor and is in discussions with potential trustees.

JOC is an Ethereum-compatible Layer 1 public blockchain run by a consortium of Japanese companies and operated by 14 validators, including Dentsu Inc., NTT Communications and SBINFT Co. Issuing EJPY on JOC and on Ethereum is intended to allow interoperability with existing Ethereum tools and decentralized applications while supporting on-chain activity native to JOC.

Under the planned trust structure, trustees would hold and manage the underlying yen reserves while the foundation serves as settlor. The trust model is not subject to the per-transaction remittance limit of 1 million yen that applies to non-bank issuers using a fund-transfer service provider model.

Japan’s 2023 stablecoin rules created a regulatory framework for yen-pegged tokens and licensed issuers. Since those rules, several financial groups have launched or announced yen stablecoin initiatives, including a trust-type token from SBI Holdings and pilots by major banks.

Key operational details for EJPY have not been finalized. The foundation did not disclose issuance volume, exact timing, the identity of trustees, reserve custody arrangements, audit procedures or redemption mechanisms. The organization noted those topics are under discussion and expects to clarify them before launch, with an aim to begin issuance within the year.

In its announcement, the foundation wrote, “The issuance and circulation of EJPY are expected to generate transactions based on real demand on JOC, including B2B settlements, digital asset settlements, remittances, and payments in various Web3 services.” The release added the team will consider multi-chain compatibility for EJPY over time.