based on materials from the site - By FinanceFeeds
Japan Post Bank is preparing to offer clients the ability to convert savings into tokenized deposits using the DCJPY blockchain network as early as the 2026 fiscal year. This move could modernize securities settlement and deepen the development of digital finance in the country, reports Nikkei.
The bank, which manages 120 million accounts with deposits totaling approximately $1.29 trillion, plans to join the DCJPY platform developed by DeCurret DCP, a Japanese fintech company backed by MUFG and other financial giants. The network, launched in August 2024, issues a deposit token pegged to the yen and redeemable on a one-to-one basis by participating banks.
DeCurret DCP raised about 4.9 billion yen ($33 million) in funding rounds supported by more than 60 companies, including the parent company of Japan Post Bank — Japan Post Holdings, Daiwa Securities Group, and East Japan Railway, highlighting the consortium nature of the initiative.
According to the plan, retail depositors will be able to exchange cash balances for DCJPY tokens, which can then be used to purchase tokenized securities with a target yield of 3% to 5%, the report states. Settlement times will be reduced from several days to nearly instant, which the bank hopes will attract the attention of young investors seeking efficiency and digital financial products.
In Japan, the traditional settlement cycle for corporate bonds and securities is T+2 (two business days after a transaction is concluded). According to industry analysts, thanks to the transition to nearly instant settlements based on blockchain, Japan Post Bank could save billions of yen in operational costs annually. Currently, GMO Aozora Net Bank is the only lender publicly named as the issuer bank of DCJPY, although the token has already undergone several tests to validate the concept. Pilot programs included modeling securities settlements, interbank transfers, and distribution of government subsidies. According to published results from DeCurret, the total amount of test transactions exceeded 2 billion yen. DeCurret is also negotiating with local authorities to use the network for the distribution of subsidies and grants, potentially digitizing municipal operations.
With assets exceeding 190 trillion yen ($1.3 trillion), Japan Post Bank is among the largest custodians in the world — larger than the deposit base of JPMorgan Chase in the U.S. — which gives it unparalleled opportunities to test the infrastructure of digital currencies.
The DCJPY model differs from stablecoins in that it operates on an exclusive blockchain and represents direct bank deposits rather than collateral from third parties. Regulators are separately considering approving the first Japanese stablecoin denominated in yen and issued domestically this fall. The launch will be conducted by the Tokyo fintech company JPYC.
JPYC has already issued prepaid tokens pegged to the yen in accordance with current electronic money regulations and has conducted transactions totaling more than 20 billion yen ($137 million) to date, indicating demand for regulated alternatives to the digital yen.
These events are occurring against the backdrop of a broader rethinking of Japan's financial system. Policymakers are considering changes to the country's tax code to simplify cryptocurrency trading, while regulators are looking at ways to open the path to exchange-traded funds (ETFs) linked to digital assets.
Currently, Japan has a fixed capital gains tax on digital assets of 20%, and the ruling Liberal Democratic Party (LDP) has proposed exempting unrealized gains on corporate assets to stimulate domestic Web3 startups.
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