Hassan Maishera
TL;DR
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SBI Holdings has partnered with Startale Group to unveil JPYSC, a trust bank-backed Japanese yen stablecoin for institutional and cross-border use cases.
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JPYSC is said to be Japan’s first trust-based stablecoin.
SBI Holdings and Startale Group to Launch JPYSC
Japan's SBI Holdings and Startale Group have announced the launch of JPYSC, a trust bank-backed Japanese yen stablecoin for institutional and cross-border use cases.
In a press release by Startale, JPYSC is Japan's first trust bank-backed stablecoin, with issuance managed by SBI Shinsei Trust Bank in compliance with local digital asset regulations.
Furthermore, SBI VC Trade, the group's crypto exchange, will act as the primary distribution partner while Startale will lead technical development.
"The partners believe a trust bank-backed yen stablecoin can expand the role of the yen in digital finance and provide a regulated alternative in a market currently dominated by U.S. dollar-denominated stablecoins," the press release added.
The two companies added that early engagement from institutions and enterprises show growing demand for yen-denominated stablecoins across payments, treasury management, and cross-border settlement.
The press release added that the stablecoin is being developed to enable interoperability across traditional infrastructure and different blockchain networks, according to the statement.
While commenting on this latest development, Startale Group CEO Sota Watanabe said,
"Our yen-denominated stablecoin is not just a means of everyday payment - it will play a central role in a fully onchain world. In particular, we see enormous potential in enabling payments between AI agents and powering distributions for tokenized assets, both of which will soon become reality."
The stablecoin is set to launch in the next quarter, subject to regulatory approvals.
This latest development comes as Japan has intensified efforts in recent years to integrate regulated stablecoins into its mainstream financial system.
In 2022, the Japanese parliament passed amendments to the Payment Services Act that recognized fiat-pegged stablecoins as "Electronic Payment Instruments."
Five months ago, Japanese authorities approved JPYC's stablecoin of the same name as the country's first legally recognized yen-backed stablecoin
To intensify efforts, Japan's three megabanks — MUFG, SMBC, and Mizuho — also launched stablecoin and tokenized deposit pilots spanning payments, interbank settlement, and institutional financial services. Japan’s Financial Services Agency (FSA) officially announced its support for the pilot project involving the three banks in December.
