Japan’s enterprise-led blockchain to issue yen stablecoin for B2B settlements

The Japan Blockchain Foundation has announced its intention to issue EJPY, a Japanese yen-pegged stablecoin, on both Japan Open Chain (JOC) and Ethereum. EJPY is structured as a trust-type stablecoin, with the foundation acting as the settlor, and discussions are underway with potential trustees. The stablecoin is expected to facilitate various transactions, including B2B settlements, digital asset settlements, remittances, and payments within Web3 services, with future consideration for multi-chain compatibility. Japan Open Chain is an Ethereum-compatible Layer 1 public blockchain operated by a consortium of Japanese enterprises, including Dentsu Inc. and NTT Communications. Unlike earlier issuers using a fund transfer service provider model with transaction limits, EJPY's trust-type structure will not be subject to such restrictions. While specific issuance details and timelines are pending, the foundation reportedly aims for issuance within the current year, following Japan's 2023 stablecoin regulations and the approval of JPYC as the first yen stablecoin. This development aligns with a broader trend of major Japanese financial players, such as SBI Holdings and megabanks MUFG, SMBC, and Mizuho, exploring stablecoin initiatives.

(Source：The Block)