Hokkoku Bank, a regional financial institution in Ishikawa prefecture, has introduced Tochika, Japan’s first deposit-backed stablecoin. Users with a Hokkoku Bank deposit account and access to the Tochitsuka app can purchase and utilize this stablecoin. Tochitsuka, originally developed by Digital Platformer for earning points from city services, now serves as a wallet for Tochika tokens.
Tochika coexists with Tochipo, Suzu City’s point system, and users can spend both stablecoins and points at affiliated retail stores, albeit limited to Suzu City. The bank aims to promote digitalization by offering Tochitsuka to businesses hesitant to adopt cashless payments due to transaction fees and local gift certificate issuers still reliant on paper-based certificates.
Moreover, Hokkoku Bank plans to introduce a peer-to-peer remittance function by the end of the year. The bank envisions future collaborations with other regional banks to facilitate a seamless cashless environment, potentially enabling the use of stablecoins across different regions.
Meanwhile, other banks in Japan, including MUFG and Minha Bank, are preparing to launch their own yen-pegged token offerings.
Conclusively, Hokkoku Bank’s introduction of Tochika is a significant step in Japan’s adoption of stablecoins and digital payment solutions. As the country moves towards a cashless society, initiatives like Tochika demonstrate innovative approaches by regional banks to meet evolving consumer needs and promote financial inclusion. Collaboration between banks and fintech entities play a crucial role in shaping Japan’s digital economy and the convenience and efficiency of financial transactions.
