Japan Post Bank to Launch Tokenized Yen by 2026 for 120 Million Customers

Japan Post Bank has announced plans to introduce DCJPY, a tokenized deposit currency, by fiscal year 2026, giving its 120 million account holders access to blockchain-based financial services backed by the institution's $1.29 trillion in deposits.

The digital currency will operate on a permissioned blockchain developed by DeCurret DCP, a subsidiary of Internet Initiative Japan, enabling near-instant settlement of digital securities and other blockchain assets, Reuters reported on Tuesday. Unlike publicly traded stablecoins, DCJPY represents actual bank deposits with guaranteed 1:1 yen redemption.

Japan Post Bank depositors will convert traditional yen holdings into DCJPY tokens for instant transactions involving security tokens and digital assets. The blockchain infrastructure promises transparent, auditable transfers while maintaining regulatory compliance through the controlled network environment.

The initiative represents Japan's largest retail banking commitment to tokenized finance, potentially accelerating blockchain adoption across the country's financial sector. The bank's government backing and extensive branch network position it as a bridge between traditional banking and digital asset infrastructure.

DCJPY development aligns with broader Japanese digital currency efforts, including the Bank of Japan's ongoing central bank digital currency trials. The private sector initiative could provide real-world data on adoption patterns and operational challenges ahead of any national digital yen launch.

Beyond retail applications, Japan Post Bank plans to explore DCJPY for government subsidy distribution, enabling automatic delivery of public funds to citizen accounts. This use case could streamline administrative processes while ensuring transaction transparency through blockchain records.

The announcement comes as Japan's traditional bond market faces pressure, with insurers and pension funds becoming net sellers of long-term government bonds in 2025. Tokenized yen infrastructure could create new demand channels for yen-denominated assets and support market stability.

DeCurret DCP's permissioned blockchain distinguishes DCJPY from cryptocurrency stablecoins by operating under banking regulations rather than digital asset frameworks.

The 2026 timeline allows Japan Post Bank to develop necessary infrastructure and regulatory approvals for what would become one of the world's largest tokenized deposit programs by customer base and asset backing.