Japan Post Bank eyes 2026 rollout of DCJPY deposit token for asset settlement: Nikkei

Japan Post Bank plans to adopt a tokenized asset network in FY2026, giving holders of 120 million accounts the ability to exchange their savings for a token that can be used for easier securities transactions, according to a new report from local outlet Nikkei. 

Japan Post Bank will join the DCJPY network, according to the report, which issues a token of the same name, redeemable by partner banks at 1 yen. DCJPY was created by Japanese firm DeCurret DCP, which is backed by MUFG (Japan's largest finance firm) among others, and the network was revealed in August of 2024.

Depositors will be able to instantly convert savings to DCJPY tokens, which can then be used to purchase tokenized securities targeting returns of around 3% to 5%, the report states. The bank, which holds more deposits on behalf of retail users than any other bank in the country, aims to attract a younger consumer base by reducing the settlement time for such transactions from days to near-instantly. 

DeCurret DCP is also in talks with local governments to have subsidies and grants paid through DCJPY, digitizing local operations, the report states. So far, GMO Aozora Net Bank is the only bank announced as a minting bank for DCJPY, though it has been tested in various proofs of concept. 

The deposit token functions differently from a stablecoin in that it operates on a permissioned network and represents a direct bank deposit. Nikkei also reported this month that Japan's Financial Services Agency plans to approve its first yen-denominated domestically regulated stablecoin this fall, issued by Tokyo-based fintech company JPYC. Japan is also considering revising its tax code to promote crypto trading and open a path towards official ETF offerings.