The Japan Blockchain Foundation has officially announced plans to issue EJPY, a Japanese yen-pegged stablecoin built on a trust-based model. According to a report by The Block, the foundation will act as the settlor, while negotiations with potential trustees are ongoing to manage the underlying yen reserves. The stablecoin is set to launch on both the Japan Open Chain (JOC)—a domestic Ethereum-compatible Layer 1 blockchain operated by enterprises like Dentsu and NTT Communications—and the global Ethereum network, aiming to maximize accessibility for businesses.
EJPY is structured as a trust-type stablecoin, meaning the yen backing it is held in dedicated trust accounts. This design is expected to provide enhanced transparency and regulatory compliance, and importantly, it may allow the stablecoin to bypass the 1 million yen transfer cap that applies to fund transfer service provider models under Japan's Payment Services Act. The foundation targets B2B settlements, digital asset settlements, remittances, and Web3 service payments as primary use cases, with the goal of generating real-demand transactions on the Japan Open Chain.
The announcement arrives as Japan's regulated stablecoin market becomes increasingly competitive. JPYC launched Japan’s first yen-backed stablecoin in October 2025, backed by yen deposits and government bonds. Meanwhile, SBI Holdings and Startale Group are developing JPYSC under a Type III framework for institutional payments, and a bank-led project involving MUFG, SMBC, and Mizuho is also underway. The foundation has stressed that no launch date, trustee, or final service list has been confirmed, and that the announcement does not constitute a sale or solicitation.
The Japan Open Chain’s native token, JOC Coin, which was listed on the Zaif exchange in February 2026, could see increased utility if EJPY drives transaction volume on the network. With the foundation operating the consortium behind JOC, the stablecoin launch represents a strategic effort to position the chain as a hub for compliant, enterprise-grade digital payments in Japan.
