Japan to explore domestic interbank settlement using stablecoins

Published
Score
11

Why it matters

Japan's Financial Services Agency (FSA) has designated a Payment Innovation Project (PIP) for DeCurret, GMO Aozora Net Bank, and Abeam Consulting to explore domestic interbank settlement using tokenized deposits like DCJPY, addressing limitations in single-bank solutions and traditional real-time gross settlement (RTGS) systems.[1][5] The core experiment tests two alternatives to RTGS: stablecoins for interbank payments and a settlement bank model where participating banks hold accounts at a central bank for 24/7 transfers.[1] This live pilot launches in April 2026, focusing on multi-bank tokenized deposit interoperability beyond intra-bank payments.[1][5]

Key players include DeCurret (DCJPY developer), GMO Aozora Net Bank, and Abeam Consulting, under FSA oversight via its FinTech Proof-of-Concept Hub (active since 2017).[1][2] Parallel efforts involve Japan's megabanks—Mizuho, MUFG, SMBC—piloting joint stablecoin issuance as electronic payment instruments, with partners like Mitsubishi Corporation, Progmat Inc., and Mitsubishi UFJ Trust and Banking.[2][3][9] The Bank of Japan (BoJ) supports related blockchain trials for central bank money settlement and its CBDC pilot (ongoing since 2023).[4][6][14] Regulations from the 2023 Payment Services Act enable licensed banks and trust firms to issue fully reserved, non-interest-bearing stablecoins backed by high-quality assets like JGBs.[3][7][9]

This builds on Japan's stablecoin evolution: JPYC launched as a prepaid token in 2021, becoming the first regulated yen stablecoin in 2025 under new laws, amid BoJ CBDC PoCs (2021-2023) and pilots.[3][6][9] Megabank pilots started November 2025, targeting ¥1 trillion issuance by 2028 for B2B use cases like Mitsubishi's inter-subsidiary transfers.[2][3] Timeline accelerates with 2026 live rails, contrasting slower global efforts.[5]

Newsworthy for signaling Japan's leadership in regulated blockchain infrastructure—live pilots amid global debates—modernizing payments with 24/7 settlement, competing tokenized deposits vs. stablecoins, and institutional adoption by megabanks handling trillions.[1][3][5][9]

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