--- title: "Japan Plans EJPY Stablecoin on Ethereum and Japan Open Chain" date: 2026-05-13 author: "Kathleen Kinder" featured_image: "https://coinlaw.io/wp-content/uploads/2026/05/japan-plans-ejpy-stablecoin-on-ethereum.jpg" categories: - name: "Cryptocurrency" url: "/crypto.md" tags: - name: "News" url: "/tag/news.md" --- # Japan Plans EJPY Stablecoin on Ethereum and Japan Open Chain Japan Blockchain Foundation is preparing to launch EJPY, a yen-backed stablecoin designed for business payments, remittances, and blockchain based settlements across Japan Open Chain and Ethereum. ## Key Takeaways - Japan Blockchain Foundation plans to issue the EJPY stablecoin under a trust based legal structure. - The stablecoin will launch on Japan Open Chain and Ethereum, with multi chain expansion planned later. - EJPY is focused on enterprise payments, remittances, digital asset settlements, and Web3 commerce. - Japan’s regulated stablecoin market is becoming increasingly competitive with projects from SBI Holdings, JPYC, MUFG, SMBC, and Mizuho. ## What Happened? Japan Blockchain Foundation officially confirmed plans to develop and issue **EJPY**, a Japanese yen pegged stablecoin aimed at supporting enterprise level blockchain payments and financial settlements. The stablecoin will initially operate on **Japan Open Chain** and **Ethereum** while future support for additional blockchain networks remains under consideration. The foundation stated that discussions with trustee businesses and compliance partners have advanced significantly, helping shape the legal and operational structure needed for the stablecoin’s launch. > 🇯🇵JUST IN: Japan to launch EJPY, a trust-type yen stablecoin built for real-world use cases like B2B payments and remittances. [pic.twitter.com/vdlam989l9](https://t.co/vdlam989l9) > > — Coin Bureau (@coinbureau) [May 13, 2026](https://twitter.com/coinbureau/status/2054485733076000879?ref_src=twsrc%5Etfw) ## Japan Pushes Forward With Enterprise Stablecoin Infrastructure The EJPY initiative reflects Japan’s broader strategy to modernize financial infrastructure using regulated blockchain technology. Unlike many stablecoins focused mainly on crypto trading liquidity, **EJPY** is being positioned as a practical payment tool for businesses, financial institutions, and local governments. According to the announcement, EJPY is expected to support several real world use cases, including: - **B2B settlements** - **Cross-border remittances** - **Digital asset transactions** - **Web3 payment services** - **Municipal and regional payment systems** Japan Blockchain Foundation said stablecoins are becoming an important part of next generation financial infrastructure because they allow actual value transfers to move efficiently on blockchain networks. The organization added that preparations are currently focused on real demand driven applications rather than speculative crypto activity. ## Trust Based Structure Could Remove Transaction Limits One of the most important aspects of the EJPY project is its trust type legal structure. Under this model, the foundation acts as the settlor while trust assets are managed separately through trustee partners. This structure may help EJPY avoid restrictions tied to older [Japanese stablecoin frameworks](https://coinlaw.io/japan-oecd-crypto-tax-reporting-2026/). Previous fund transfer service provider models in Japan reportedly faced transaction caps of up to 1 million yen per transfer. Trust based stablecoins may operate with greater flexibility for larger corporate settlements. That difference could become critical for enterprise adoption since large companies require high value transfers, fast redemption processes, and stronger legal clarity before integrating blockchain based payment systems into daily operations. The foundation has not yet announced an official launch date, final trustee partners, or public issuance timeline. It also clarified that the current announcement does not represent a public offering or token sale. ## Japan Open Chain Expands Its Blockchain Ecosystem EJPY will initially use Japan Open Chain as its primary settlement infrastructure. Japan Open Chain is a fully Ethereum compatible Layer-1 blockchain operated by a consortium of major Japanese enterprises and institutions. The validator network currently includes 14 organizations such as **Dentsu, NTT Communications, SBINFT, Pacific Meta, Nethermind, TIS, and Kyoto University of the Arts**. According to the foundation, the network plans to expand to 21 validators in the future. The blockchain is designed to combine enterprise grade reliability with compatibility for Ethereum based applications and smart contracts. [Ethereum](https://coinlaw.io/ethereum-statistics/) support for EJPY will also allow broader interoperability with global blockchain ecosystems and Web3 services. Earlier this year, Japan Open Chain’s native token, JOC Coin, was listed on the Japanese crypto exchange Zaif, helping expand domestic access to the ecosystem. ## Competition in Japan’s Stablecoin Market Intensifies The launch of EJPY comes as Japan’s regulated stablecoin sector continues to grow rapidly. Earlier projects such as **[JPYC](https://coinlaw.io/jpyc-japan-yen-stablecoin-launch/)** introduced yen backed stablecoin systems tied to yen deposits and government bonds. At the same time, **SBI Holdings** and **Startale Group** have been preparing their own stablecoin initiative called JPYSC for institutional payment use cases. Japan’s largest banking groups, including **MUFG, SMBC, and Mizuho**, have also been involved in blockchain payment and tokenized deposit pilots. These developments show that Japan is moving aggressively toward regulated digital payment infrastructure while maintaining strong compliance standards. ## CoinLaw’s Takeaway In my experience, Japan is becoming one of the few countries building blockchain payment systems with a serious long term strategy instead of chasing short term crypto hype. I found the EJPY approach particularly important because it focuses on enterprise settlements and legal compliance rather than speculative retail trading. If Japan successfully integrates stablecoins into business payments and financial infrastructure, it could become a model for other Asian markets exploring regulated blockchain finance. The competition between banks, blockchain firms, and stablecoin issuers also shows that digital payments are moving closer to mainstream adoption faster than many expected. Definition of Blockchain. Link to full glossary entry follows the description.**Blockchain**A distributed digital ledger that records transactions across a network, with each block cryptographically linked to the previous one for security. [Read more](https://coinlaw.io/glossary/blockchain/) Definition of Smart Contract. Link to full glossary entry follows the description.**Smart Contract**A smart contract is a self-executing program stored on a blockchain that automatically enforces agreement terms when predefined conditions are met, without intermediaries. [Read more](https://coinlaw.io/glossary/smart-contract/) Definition of Layer 1. Link to full glossary entry follows the description.**Layer 1**A Layer 1 is the base blockchain layer that settles its own transactions, enforces its own consensus, and secures its own ledger. Bitcoin, Ethereum, Solana. [Read more](https://coinlaw.io/glossary/layer-1/) Definition of Cross-Chain. Link to full glossary entry follows the description.**Cross-Chain**Cross-chain is the ability to move data or assets between separate blockchains via bridges, messaging protocols, or interoperability networks. [Read more](https://coinlaw.io/glossary/cross-chain/)