Japan completes its first real-time DVP settlement for security tokens using DCJPY
Six major Japanese financial institutions have completed the country’s first real-time...
Quick overview
- Six major Japanese financial institutions have successfully completed the country's first real-time Delivery Versus Payment settlement of security tokens using DCJPY tokenized bank deposits.
- The proof-of-concept demonstrated instant settlement of corporate bond trades, eliminating delays and settlement risks associated with traditional payment systems.
- DCJPY, a tokenized deposit backed by actual yen, offers regulatory and stability advantages, making it suitable for Japan's banking system.
- This development is expected to enhance secondary trading and support the growth of tokenized assets, with plans for a major DCJPY rollout by Japan Post Bank.
Six major Japanese financial institutions have completed the country’s first real-time Delivery Versus Payment (DVP) settlement of security tokens using DCJPY tokenized bank deposits.
The proof-of-concept took place in March 2026 and was announced on April 24. It involved:
- SBI Securities and Daiwa Securities (trading security tokens)
- SBI Shinsei Bank (issuer of DCJPY)
- BOOSTRY (ibet for Fin blockchain platform)
- DeCurret DCP (DCJPY operator)
- Osaka Digital Exchange (ODX) (observer)
What Was Achieved
Secondary market trades of corporate bonds, issued as security tokens on the enterprise Ethereum-based ibet for Fin platform, settled instantly and atomically with DCJPY. This removed settlement delays and Herstatt risk. Before this, tokens moved on-chain instantly, but payments depended on slower traditional systems. Two round-trip transactions were fully verified.
Why DCJPY Stands Out
DCJPY is a tokenized deposit, backed one-to-one by actual yen at SBI Shinsei Bank. Unlike a stablecoin, it receives the same regulatory, accounting, and stability treatment as regular bank deposits, making it a good fit for Japan’s two-tier banking system.
Broader Impact
- This approach removes settlement risk and greatly reduces manual processes.
- Japan Post Bank plans a major DCJPY rollout in fiscal year 2026 for both retail and securities use, covering 120 million accounts and about $1.29 trillion in deposits.
- This development speeds up secondary trading on platforms such as ODX’s START market and supports the expanding sectors of tokenized real estate and digital bonds.
This bank-led achievement shows Japan’s steady move into tokenized assets and around-the-clock on-chain capital markets, while keeping regulatory safeguards in place. Future phases aim for full automation and broader adoption.
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