Japan's enterprise-led blockchain to issue yen stablecoin for B2B settlements

Japan Blockchain Foundation announced Wednesday that it will issue a Japanese yen-pegged stablecoin, EJPY, on Japan Open Chain (JOC) and Ethereum.

EJPY is designed as a trust-type yen stablecoin, with the foundation acting as the settlor. The foundation said it is currently engaging in discussions with potential trustees for the stablecoin.

"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 said, adding that the team will consider multi-chain compatibility for EJPY in the future.

Japan Blockchain Foundation is the entity operating the consortium of Japanese enterprises behind Japan Open Chain, an Ethereum-compatible Layer 1 public blockchain. The network is operated by 14 validators, including Dentsu Inc., NTT Communications, and SBINFT Co.

According to local news outlet NADA News, non-bank issuers of stablecoins can opt for either a fund transfer service provider model or a trust-type structure. While the former — used by earlier issuers like JPYC — is subject to a per-transaction remittance limit of 1 million yen, the trust-type model is not bound by such limits.

Further details of EJPY's issuance, including timeline, have not been determined, according to the press release. However, NADA News reported that the foundation aims to start issuance within this year.

Since Japanese authorities laid out stablecoin regulations in 2023 and approved JPYC as the country's first yen stablecoin, other major players have quickly moved to establish their own stablecoin offerings.

Financial giant SBI Holdings unveiled its trust-type stablecoin JPYSC earlier this year under a partnership with Startale Group, while three local megabanks — MUFG, SMBC, and Mizuho — are working on stablecoin and tokenized deposit pilots.