SBI Holdings and Startale present JPYSC for institutional settlement and tokenization

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SBI launches yen stablecoin JPYSC

Highlights

SBI Holdings and Startale introduced JPYSC, the first trust bank backed yen stablecoin in Japan.
The stablecoin is set to launch in Q2 2026 under a strict regulatory framework with direct yen reserves.
JPYSC targets institutional settlement, tokenization and cross border payments as Japan expands its role in digital finance.

The launch is scheduled for the second quarter of 2026, subject to regulatory approval, Startale reports. The project enters the market at a time when more than 90% of the roughly 300 billion dollar global stablecoin sector remains pegged to the US dollar.

A regulated digital yen for institutional use

JPYSC is structured as a trust based electronic payment instrument under Japan Payment Services Act. Unlike JPYC, which is classified as a prepaid payment tool, JPYSC falls under a stricter regulatory framework requiring direct yen reserves, governance standards and full regulatory oversight.

SBI VC Trade will act as the primary distributor. Startale Group, the developer of Astar Network and a Web3 partner of Sony, is responsible for the technical architecture. The stablecoin is designed to operate across both traditional banking infrastructure and public blockchain networks.

The companies plan to position JPYSC for corporate treasury management, cross border settlement and tokenized asset issuance. Automated settlement between digital systems, including transactions between AI agents, is also under consideration. Financial institutions and corporations have already shown early interest during the preparation phase.

The trust bank issuance model предусматриes segregated reserves, audit requirements and operational controls aimed at reducing risk for institutional participants.

Japan strategy and competition in Asia

Japan has gradually established a regulatory framework for stablecoins. Amendments to the Payment Services Act in 2022 recognized fiat backed stablecoins as electronic payment instruments and limited issuance to licensed banks and trust companies.

In 2025 lawmakers approved rules allowing trust based issuers to invest up to 50% of reserves in short term government bonds. MUFG, SMBC and Mizuho are already testing stablecoin and tokenized deposit initiatives for payments and interbank settlement.

Meanwhile, Hong Kong plans to grant its first stablecoin licenses in March 2026, and South Korea is advancing won denominated stablecoin initiatives. Against the dominance of USDT and USDC, JPYSC strengthens the role of the yen in digital settlement and reduces reliance on dollar based infrastructure.

For institutional investors, JPYSC provides a regulated instrument for settlement and tokenized asset operations in national currency. It may support the development of Japan domestic digital securities market and simplify cross border transactions for Japanese companies.

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