Japan Post Bank is preparing to introduce its digital deposit currency, DCJPY, by 2026 in a move that could reshape Japan’s financial landscape and accelerate the country’s adoption of blockchain technology.

A Major Player Steps Into Digital Currency

With more than $1.3 trillion in deposits and 120 million account holders, Japan Post Bank’s entry into digital finance marks a significant milestone. The planned DCJPY will be issued on a permissioned blockchain developed by Tokyo-based DeCurret DCP, with Mitsubishi UFJ Financial Group (MUFG) among its key backers. Unlike conventional stablecoins, the DCJPY will represent direct bank deposits, maintaining a 1:1 redemption with the Japanese yen.

GMO Aozora Net Bank is currently the sole institution authorized to mint DCJPY tokens. Multiple proof-of-concept trials have already demonstrated the system’s functionality, reinforcing its potential for large-scale adoption.

Streamlining Transactions and Expanding Use Cases

The tokenized yen is expected to drastically cut settlement times for securities transactions, shifting from multi-day processes to near-instant execution. Customers will be able to convert savings into blockchain-based tokens, making financial operations faster and more efficient.

Japan Post Bank also aims to attract younger users by offering reduced transaction friction and modernized services, with tokenized securities projected to deliver returns between 3% and 5%.

Beyond traditional finance, DCJPY has been tested for broader applications such as NFTs, cross-border payments, and advanced asset tokenization.

Local governments are also considering the token for distributing subsidies, disaster relief, and grants, potentially digitizing large parts of municipal operations.

Regulatory Backing and Institutional Support

Japan’s Financial Services Agency (FSA) is expected to approve the country’s first regulated yen stablecoin later this year, with JPYC slated as the issuer. In contrast to private, publicly traded stablecoins that often face transparency concerns, DCJPY’s permissioned network is designed for regulatory compliance. Its structure ensures adherence to anti-money laundering protocols and deposit insurance requirements, drawing interest from major banks including MUFG and Sumitomo Mitsui Banking Corporation (SMBC), both of which are testing the platform for corporate treasury functions and international settlements.

Complementing Japan’s CBDC Exploration

The Bank of Japan (BOJ) is running phased trials for a potential Central Bank Digital Currency, with a focus on scalability, speed, and offline usability. While no decision has been made on a nationwide digital yen, the DCJPY initiative provides a parallel, private-sector model that could inform the BOJ’s future approach.

Japan’s dual-track strategy of combining private innovation with central bank oversight illustrates its pragmatic stance on digital finance. If successful, the Japan Post Bank’s launch of DCJPY could become a blueprint for regulated digital currencies, positioning Japan as a leader in blockchain-powered banking.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice

Canadian authorities have seized a record $40 million in crypto from cryptocurrency exchange TradeOgre. The seizure is the country’s largest crypto seizure to date, and comes after a year-long probe by the Royal Canadian Mounted Police (RCMP). 

The authorities began their investigation into TradeOgre after a tip from Europol in June 2024.

Canada Seizes $40 Million In Crypto

The Royal Canadian Mounted Police (RCMP) has confirmed the seizure of $40 million in crypto from cryptocurrency exchange TradeOgre. The seizure is the country’s largest cryptocurrency seizure to date, surpassing a case in 2023 when authorities seized $13 million in Bitcoin linked to a darknet fentanyl ring, highlighting the scale of the current seizure. The operation led to the complete dismantling of TradeOgre, the first time Canadian law enforcement agencies completely shut down a cryptocurrency exchange. The platform had been operating without proper registration, and failed to identify its customers.

A Vital Tip

The seizure comes after a year-long investigation launched in June 2024 after Europol tipped off the Royal Canadian Mounted Police’s money laundering division. The RCMP worked with its financial and cybercrime units, and also used the services of blockchain analytics platform Arkham Intelligence, to trace the illicit flows on the exchange. Authorities alleged that criminal organizations used the platform to launder money. The RCMP also said TradeOgre violated Canadian regulations by failing to register with Fintrac as a money services business, adding that it also failed to complete Know-Your-Customer (KYC) checks.

According to the authorities, the majority of funds moving through TradeOgre were criminal in origin, and noted that anonymity was one of the key features of the platform. TradeOgre was founded in 2018, offering users privacy-focused tokens like Monero. As a result, it attracted users who wanted anonymity and minimal oversight. The platform’s minimal interface and lack of KYC requirements made it very popular among a niche group of traders. However, it also attracted the attention of law enforcement agencies.

How The Seizure Unfolded

Speculation about the platform began in July when its X account and website went offline. This prompted users to wonder if they had fallen for an exit scam. Blockchain sleuths also noted that funds linked to the platform were transferred to wallets with messages embedded in Bitcoin transactions. One message read,

“Crypto assets controlled by the RCMP.”

This led to speculation that the authorities had stepped in and assumed control of the platform. The RCMP confirmed on Thursday that the encoded messages were genuine and part of the operation against TradeOgre.

“This marks the largest crypto asset seizure in Canadian history.”

Authorities stated that data recovered from the platform will be analyzed, with criminal charges to follow.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice

source ; https://cryptodaily.co.uk