Japan Open Chain Targets B2B Payments with Emerging EJPY Initiative
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The Japan Blockchain Foundation has revealed intentions to launch EJPY, a stablecoin pegged to the Japanese yen, on both the Japan Open Chain and Ethereum platforms.
Overview
- EJPY aims to facilitate B2B transactions on Japan Open Chain, with Ethereum integration expected from the outset.
- The specific terms and timeline for the EJPY launch are yet to be finalized, pending regulatory approvals, trustee selection, and ongoing partner discussions.
- The market for yen-pegged stablecoins is rapidly increasing with the presence of JPYC, JPYSC, and ongoing bank pilots.
The foundation is responsible for the consortium that oversees Japan Open Chain, a public blockchain compatible with Ethereum, managed by Japanese enterprises.
According to the foundation, EJPY will operate under a trust-type framework, with the foundation taking on the role of settlor. Discussions with potential trustee firms include issuance, redemption processes, trust asset management, system requirements, and legal compliance.
Initially, EJPY is being developed for Japan Open Chain. The foundation indicates that the token could enable B2B settlements, digital asset transactions, remittances, and Web3 payments. EJPY is also anticipated to “produce transactions driven by genuine demand,” although this is contingent on partnerships, user engagement, and necessary approvals.
Trust Model Could Enhance High-Value Transfers
This trust-type model may differentiate EJPY from earlier yen stablecoin structures. Commentary on Japan’s stablecoin regulations suggests that fund transfer service models encounter a limit of 1 million yen, whereas trust-type stablecoins might be exempt from such restrictions.
This distinction is crucial for corporate transactions. Larger enterprises require efficient high-value transfers, quick redemption, and unambiguous legal treatment before adopting stablecoins in their routine financial practices. The foundation has not disclosed the identity of the trustee, the firms involved, or the anticipated launch date and service offerings. Additionally, they emphasize that this announcement does not signify a sale, offering, or solicitation.
Expansion of Japan’s Yen Stablecoin Market
The announcement regarding EJPY comes at a time when Japan’s regulated stablecoin sector is gaining momentum. Recent reports indicated that JPYC was the first yen-backed stablecoin to launch in October 2025, supported by yen deposits and Japanese government bonds. Furthermore, SBI Holdings and Startale Group are working on JPYSC under Japan’s Type III framework catering to institutional transactions.
The Financial Services Agency of Japan is also backing a bank-led stablecoin initiative involving MUFG, SMBC, and Mizuho. This project is associated with blockchain-based payment trials and corporate settlement applications, positioning EJPY within a broader initiative to transition yen settlements onto regulated blockchain infrastructures.