Japan Post Bank to Launch DCJPY Digital Currency in 2026 Amid Bond Market Turmoil
Japan Post Bank is preparing a major digital shift, with plans to introduce a new DCJPY digital currency during fiscal year 2026. The move comes as Japan’s bond market faces heavy pressure, with long-term yields climbing to multi-year highs and institutional demand weakening.
Digital Currency Backed by 120 Million Accounts
The bank will leverage its 120 million depositor accounts to support seamless integration with the new digital currency. Built on blockchain technology, DCJPY will be pegged 1:1 to the Japanese yen, enabling instant conversions between traditional savings and tokenized financial products.
Through its app, users will be able to convert savings into DCJPY and access blockchain-based investments such as security tokens and bonds, which are expected to yield between 3% and 5%. This positions Japan Post Bank to tap into the booming tokenized assets sector, projected by Boston Consulting Group and Ripple to expand from $600 billion in 2025 to $18.9 trillion by 2033. 
Supporting Governments and Local Subsidies
Beyond individual investors, DCJPY is designed to simplify public sector processes. The initiative could allow local governments to distribute grants and subsidies directly to residents’ accounts, speeding up disbursement and cutting administrative costs. Tokyo-based DeCurret DCP, which developed DCJPY, is already in discussions with municipalities to explore rollout plans.
The integration of tokenized assets, NFTs, and security tokens is also expected to enhance liquidity, accelerate settlement speeds, and reduce friction across financial markets—making both institutional and retail adoption more attractive.
Japan’s Bond Market Under Stress
The backdrop to this digital currency pivot is Japan’s worsening bond market crisis. Demand for super-long Japanese government bonds (JGBs) has weakened sharply, with insurers turning into net sellers for the first time on record. Trust banks, typically acting on behalf of pension funds, also scaled back purchases to levels more than 30% below the five-year average. 
As a result, the 30-year JGB yield has surged to 3.19%, near record highs, while the 10-year yield sits above 1.62%. The market stress underscores why Japan Post Bank is diversifying toward blockchain-based financial products.
