Introduction of EJPY Stablecoin
The Japan Blockchain Foundation has unveiled its intentions to introduce a stablecoin known as EJPY, which will be pegged to the Japanese yen. This initiative will take place on two key platforms: the Japan Open Chain and Ethereum. The Japan Open Chain itself is a public blockchain that is compatible with Ethereum and is managed by a consortium of Japanese businesses.
Design and Structure
EJPY is being designed through a trust structure, with the foundation serving as the settlor. The foundation has initiated discussions with possible trustee organizations regarding various aspects such as the process of issuance, redemption, trust management, necessary systems, and adherence to legal regulations.
Launch and Applications
Initially, the launch of EJPY will focus on the Japan Open Chain. The foundation anticipates that EJPY will facilitate business-to-business (B2B) transactions, digital asset transfers, remittances, and payments in the Web3 domain. Additionally, they have expressed optimism that EJPY will drive transactions responding to genuine demand, although this expectation ultimately hinges on collaboration with partners, user engagement, and the necessary regulatory approvals.
Validator Support and Network Growth
The Japan Open Chain operates with the support of 14 validators, which include notable corporations like Dentsu, NTT Communications, G.U. Technologies, SBINFT, Pacific Meta, and Nethermind. Plans to increase this number to 21 validators are in the pipeline. In February 2026, the native currency of this network, JOC Coin, was listed on the Zaif exchange, providing further support for local trading activities.
Legal Framework and Corporate Needs
The unique trust-type structure of EJPY may distinguish it from prior yen-backed stablecoin models. Legal reviews of Japan’s framework for stablecoins suggest that models relying on fund transfer services could be restricted by a limit of 1 million yen. In contrast, trust-type stablecoins like EJPY might circumvent this restriction, which is critical for large-scale corporate transactions. Established companies often require the capacity for significant transfers, swift redemption options, and clear legal frameworks to incorporate stablecoins into their financial operations.
Current Status and Market Context
Currently, the foundation has not disclosed any particulars about the chosen trustee, managing companies, specific launch dates, or the comprehensive list of services that will be available. They have issued a clarification stating that their announcement should not be interpreted as a sale, offering, or solicitation.
The plan for EJPY coincides with a notable uptick in Japan’s regulated stablecoin sector. Reports indicate that JPYC was launched in October 2025 as the country’s inaugural yen-backed stablecoin, which is underpinned by both yen deposits and Japanese government securities. Furthermore, SBI Holdings and Startale Group are in the process of developing JPYSC within Japan’s Type III regulatory structure aimed at institutional payments.
Moreover, Japan’s Financial Services Agency is endorsing a bank-led initiative that involves major players such as MUFG, SMBC, and Mizuho. This initiative is closely linked to blockchain-enabled payment trials and designated for corporate settlement applications, positioning EJPY within a broader framework of efforts aimed at transitioning yen settlements onto regulated blockchain infrastructures.
