SBI and Startale to Launch Japans First Trust Yen Stablecoin in Japan law

TLDR

Table of Contents

JPYSC will be issued by SBI Shinsei Trust Bank under Japan law
Launch is planned for Q2 2026 pending regulatory approval
SBI VC Trade will manage distribution of the stablecoin
JPYSC targets institutional and cross-border payment use cases

SBI Holdings and Startale Group plan to issue Japan’s first trust-based yen stablecoin under the country’s regulatory framework. The stablecoin, named JPYSC, is expected to launch in the second quarter of 2026, subject to regulatory approval.

The project places SBI Holdings and Startale Group at the center of Japan’s regulated digital asset market. The initiative aims to expand the use of the yen in digital finance and cross-border settlement.

Trust Bank Model Under Japan Regulatory Framework

JPYSC will be issued by SBI Shinsei Trust Bank in compliance with Japan’s digital asset regulations. The structure makes it the first trust bank-backed yen stablecoin in the country.

Japan amended its Payment Services Act in 2022 to recognize fiat-pegged stablecoins as Electronic Payment Instruments. This legal pathway allows regulated entities to issue compliant digital currencies.

🇯🇵 Startale Group and SBI Holdings introduce JPYSC, the first trust bank–backed JPY stablecoin issued by Shinsei Trust & Banking, with Startale Group building the technical foundation for regulated digital yen infrastructure.
Here's what makes JPYSC a landmark moment 👇🏻 pic.twitter.com/HbWGVIO3nR
— Startale 💿 (@StartaleGroup) February 27, 2026

SBI VC Trade, the crypto exchange arm of SBI Holdings, will manage the distribution of JPYSC. Startale Group will oversee technical development and blockchain integration.

The partners stated that the trust bank-backed model supports governance and operational safeguards. The structure is designed to meet institutional standards within regulated financial environments.

Institutional and Cross Border Use Cases

SBI Holdings and Startale Group said the stablecoin is designed for institutional and cross-border applications. Early engagement from enterprises indicates demand for yen-denominated digital settlement tools.

The companies stated that JPYSC can support payments, treasury management, and international settlements. The aim is to provide a regulated alternative to dollar-pegged stablecoins.

Yoshitaka Kitao, Representative Director, Chairman, and President of SBI Holdings, addressed the broader digital shift. He said, “The transition to a Token Economy where all real-world assets are tokenized and tokens permeate society as a means of settlement is now an irreversible societal trend.”

The partners believe that a regulated yen stablecoin can expand the role of Japan’s currency in global digital markets. The project also seeks to strengthen the connection between traditional finance and blockchain infrastructure.

Technical Development and Onchain Integration

Startale Group, which operates the Astar Network, will lead the technical design of JPYSC. The stablecoin is being developed for interoperability across traditional systems and multiple blockchain networks.

The companies stated that the infrastructure will allow integration with existing financial rails. It will also support tokenized assets and automated settlement processes.

Startale Group CEO Sota Watanabe outlined the long-term vision for the stablecoin. He said, “Our yen-denominated stablecoin is not just a means of everyday payment. It will play a central role in a fully onchain world.”

Watanabe added that the company sees potential in enabling payments between AI agents and supporting distributions for tokenized assets.

Japan Expands Stablecoin Ecosystem

Japan has taken steps in recent years to integrate stablecoins into its financial system. Authorities approved JPYC as the country’s first legally recognized yen-backed stablecoin last year.

Japan’s three megabanks, MUFG, SMBC, and Mizuho, have also launched stablecoin and tokenized deposit pilots. These projects cover payments, interbank settlement, and institutional services.

The Financial Services Agency has expressed support for regulated stablecoin experiments. The regulatory clarity has enabled domestic financial institutions to explore compliant digital assets.

With JPYSC, SBI Holdings and Startale Group aim to offer a trust-based yen stablecoin within Japan’s legal framework. The launch remains subject to final regulatory approvals expected before the second quarter of 2026.