Japan Post Bank will launch the DCJPY deposit Token in 2026, with 120 million accounts available for asset Settlement.

According to a report by the Nikkei, Japan Post Bank plans to allow customers to convert their savings into DCJPY deposit tokens as early as the 2026 fiscal year, for use in asset settlement on a permitted blockchain. This initiative will enable the bank's 120 million accounts and a massive pool of $1.29 trillion in deposits to directly enter the tokenization securities market, reducing settlement times from several days to nearly instantaneous, potentially marking a significant turning point in Japan's digital finance history.

DCJPY: A deposit token backed by Japanese financial giants

Issuer: Japan DeCurret DCP Company

Launch time: August 2024

Technical characteristics: 1:1 exchange with Japanese Yen by cooperating banks, operating on a permissioned blockchain.

Major supporters: Mitsubishi UFJ Financial Group (MUFG) and several other large Japanese financial institutions.

Unlike stablecoins, deposit tokens represent direct bank deposits and operate on regulated permissioned networks, offering higher security and compliance.

Application Scenarios: From Securities Settlement to Local Subsidy Distribution

Securities Settlement: Account holders can instantly convert their Japanese yen deposits into DCJPY to purchase tokenized securities with an annual yield of approximately 3%–5%.

Target audience: younger investors and digital natives

Local Government Cooperation: DeCurret DCP is in discussions with local governments to plan the issuance of subsidies and grants using DCJPY to promote the digitalization of local operations.

Currently, GMO Aozora Net Bank is the only institution that has announced to become a DCJPY minting bank and has been tested in multiple proof of concepts.

Japan's regulation and market environment are heating up concurrently

Regulatory Progress: The Financial Services Agency (FSA) of Japan plans to approve the first domestically regulated stablecoin denominated in yen this autumn, issued by Tokyo-based fintech company JPYC.

Tax reform: Japan is considering amending its cryptocurrency tax laws to promote trading and attract institutional participation.

ETF Prospects: Policy Adjustments May Pave the Way for Japan's First Cryptocurrency ETF Issuance

These measures complement Japan Post Bank's DCJPY program and may propel Japan to become an important hub for digital asset infrastructure in Asia.

Potential Impact: A Key Piece of Digital Financial Infrastructure

Massive capital pool entering: 120 million accounts, 1.29 trillion USD in deposits entering the tokenization market will significantly enhance liquidity.

Settlement efficiency revolution: Shortened from T+2/T+3 to nearly instant, reducing counterparty risk.

International demonstration effect: Japan may become the first country among major global economies to implement large-scale deposit token settlement.

Conclusion

Japan Post Bank plans to launch the DCJPY deposit token in 2026, which is not only a technological upgrade but could also be a historic transformation of Japan's financial infrastructure. With regulatory easing, cooperation from local governments, and a massive pool of funds, Japan is expected to seize a leading position in the global digital asset settlement arena.