Japan Open Chain Aims at B2B Payments with New EJPY Initiative
The Japan Blockchain Foundation has announced plans to introduce EJPY, a stablecoin linked to the Japanese yen, on both the Japan Open Chain and Ethereum platforms.
Overview
- EJPY is designed to support B2B transactions on Japan Open Chain, with Ethereum integration anticipated from the beginning.
- The exact conditions and timeline for the EJPY release are still being determined, pending regulatory approvals, trustee selection, and ongoing discussions with partners.
- The market for yen-pegged stablecoins is rapidly growing, with JPYC, JPYSC, and various bank pilots already in motion.
The foundation oversees the consortium responsible for Japan Open Chain, a public blockchain that is compatible with Ethereum and managed by Japanese companies.
According to the foundation, EJPY will function under a trust-type model, with the foundation serving as the settlor. Ongoing discussions with potential trustee firms are centered around issuance, redemption processes, trust asset management, system requirements, and legal compliance.
Initially developed for Japan Open Chain, EJPY is expected to facilitate B2B settlements, digital asset transactions, remittances, and Web3 payments. The foundation also anticipates that EJPY will “generate transactions driven by real demand,” although this is subject to partnerships, user participation, and necessary approvals.
Trust Model Could Enhance High-Value Transfers
This trust model may set EJPY apart from previous yen stablecoin initiatives. Discussions regarding Japan’s stablecoin regulations indicate that fund transfer service models face a limit of 1 million yen, whereas trust-type stablecoins could be exempt from such limitations.
This differentiation is vital for corporate transactions. Larger companies require effective high-value transfers, rapid redemption, and clear legal treatment before incorporating stablecoins into their financial processes. The foundation has yet to reveal the identity of the trustee, the parties involved, or the expected launch date and service offerings. They also clarify that this announcement does not constitute a sale, offering, or solicitation.
Expansion of Japan’s Yen Stablecoin Market
The announcement of EJPY comes as Japan’s regulated stablecoin sector gains traction. Recent reports highlighted that JPYC was the first yen-backed stablecoin launched in October 2025, backed by yen deposits and Japanese government bonds. Additionally, SBI Holdings and Startale Group are working on JPYSC under Japan’s Type III framework, aimed at institutional transactions.
The Financial Services Agency of Japan is also supporting a bank-led stablecoin initiative involving MUFG, SMBC, and Mizuho. This project is linked to blockchain-based payment trials and corporate settlement applications, positioning EJPY within a larger framework to transition yen settlements onto regulated blockchain systems.