Japan Post Bank (7182.T) has announced plans to introduce a digital yen by the end of fiscal 2026, aiming to provide its depositors with a faster, more convenient way to conduct digital financial transactions. This move highlights the increasing adoption of blockchain technology by major domestic financial institutions to streamline payments and other financial operations.

The postal bank, which holds approximately 190 trillion yen ($1.29 trillion) in deposits, will launch the digital currency in collaboration with DeCurret DCP, a blockchain-focused subsidiary of Internet Initiative Japan (3774.T). The new currency, named “DCJPY,” will be made available to Japan Post Bank depositors, allowing them to convert their traditional yen holdings into DCJPY for instant transactions involving digital securities and other blockchain-based assets.

According to the joint statement issued by Japan Post Bank and DeCurret DCP, the proposed tokenized deposit currency is designed to offer secure, transparent, and immediate transactions leveraging blockchain technology. Unlike traditional stablecoins, which are cryptocurrencies pegged to a fiat currency to maintain a stable value, DCJPY will be fully backed 1:1 by fiat yen, ensuring that each digital unit represents an equivalent amount of actual yen.

The initiative reflects a broader trend in Japan, where both private and government-linked financial institutions are exploring blockchain-based solutions to modernize the financial system, improve transaction efficiency, and provide customers with enhanced digital services. Japan Post Bank’s introduction of a government-backed digital currency could also serve as a model for other banks looking to integrate blockchain technology into their operations while maintaining trust and security for depositors. By offering instant and transparent digital transactions, DCJPY aims to make everyday financial activities easier and more efficient for millions of depositors across Japan, signaling a significant step forward in the country’s adoption of digital finance.