What is DCJPY and how does it differ from crypto?

DCJPY represents bank deposit tokens recorded on a permissioned ledger. Balances are a direct liability of the issuing bank, in JPY, and redeemable 1-to-1 into deposits. Unlike crypto assets, there is no price volatility relative to yen, and issuance, KYC, and dispute handling follow Japan’s banking and payments rules.

When could customers in Kyushu start using DCJPY?

The banks have begun a joint study, not a public launch. Timelines depend on design choices, regulatory reviews, and successful pilots. Expect a staged approach, starting with limited corporate or merchant trials. Broader availability would follow only after operational, security, and compliance goals are met.

Will DCJPY balances earn interest or involve fees?

As deposit tokens, funds are backed by bank deposits. Whether they earn interest and what fees apply will depend on each bank’s product design and account type. Expect clear disclosures on conversion, transfer limits, and merchant acceptance costs before any public rollout in Kyushu.

How could this affect fintech partners in Japan?

Fintechs could gain API access to programmable JPY payments, faster merchant settlement, and better reconciliation data. However, they must meet bank-level KYC and compliance standards. Competitive pressure may rise for existing e-money and wallet providers if DCJPY improves costs, reliability, and access to bank customers.

Global Market Insights

December 29: Kagoshima Bank, Higo Bank to study DCJPY deposit tokens

ByHuzaifa Zahoor December 29, 2025December 29, 2025

Kagoshima Bank and Higo Bank, both under Kyushu Financial Group, began a joint study on DCJPY tokenized deposits with DeCurret DCP on December 29. For Kagoshima Bank, this is a strategic step to modernize payments and settlement in Kyushu using bank-backed digital money. We outline what DCJPY could change for customers, SMEs, and fintech partners, the regulatory context in Japan, and the key milestones to track as design, compliance, and systems integration move forward.