Key Points
- SBI Holdings partnered with Startale Group to create JPYSC, a yen stablecoin backed by trust bank reserves with Q2 2026 launch plans.
- SBI Shinsei Trust Bank will manage JPYSC issuance with complete yen backing under Japan’s Payment Services Act regulations.
- Distribution of the stablecoin will occur through SBI VC Trade’s licensed cryptocurrency exchange infrastructure.
- Technical development and blockchain infrastructure for JPYSC falls under Startale Group’s management.
- Japanese legislators enacted regulations permitting trust-based stablecoin issuers to allocate up to 50 percent of reserves into government bonds.
SBI Holdings partnered with Startale Group to unveil JPYSC, a stablecoin pegged to the Japanese yen and issued through SBI Shinsei Trust Bank. The collaboration aims for a Q2 2026 market entry following regulatory clearance. The token design follows Japan’s trust bank regulatory model to guarantee direct yen backing and legal compliance.
Trust Bank Model Powers JPYSC Stablecoin Development
SBI Holdings alongside Startale Group announced JPYSC will function as an Electronic Payment Instrument under Japanese Payment Services Act provisions. SBI Shinsei Trust Bank handles token issuance while maintaining complete yen reserve backing. This framework distinguishes JPYSC from JPYC, which operates under prepaid payment instrument classification.
SBI VC Trade will manage JPYSC distribution via its regulated crypto trading platform. Startale Group assumes responsibility for technical architecture and blockchain connectivity. The firm operates the Astar Network and collaborates with Sony. Project leaders emphasized the token’s capacity for cross-chain compatibility and integration with conventional banking infrastructure.
Startale Group CEO Sota Watanabe described the initiative’s broader vision in public remarks. He explained the yen-denominated stablecoin extends beyond simple payment functionality. Watanabe emphasized the token’s role in creating a comprehensive onchain ecosystem. He highlighted significant opportunities in facilitating transactions between AI agents and supporting distributions for tokenized financial products.
Japanese authorities updated their regulatory structure in 2022 to classify stablecoins as Electronic Payment Instruments. Legislative measures limit issuance rights to authorized banks, trust institutions, and licensed money transfer services. The framework mandates reserve maintenance and adherence to regulatory supervision protocols.
Legislators approved amendments in March 2025 enabling trust stablecoin issuers to deploy up to half their reserves in short-duration government securities. Japan’s Financial Services Agency maintains oversight of stablecoin authorization processes. The agency intends to reorganize crypto asset classification under the Financial Instruments and Exchange Act.
Institutional Settlement and International Transfers Drive JPYSC Vision
Project partners indicated JPYSC will facilitate digital payment transactions alongside tokenized asset settlement operations. The token architecture connects conventional banking infrastructure with Web3 technology platforms. The initiative seeks to enable compliant yen transfers across public blockchain networks.
Japan’s three largest banking institutions, MUFG, SMBC, and Mizuho, secured Financial Services Agency authorization for a collaborative stablecoin trial program. Government officials designated 2026 as a “Digital Year” for financial sector transformation. The Finance Minister confirmed this schedule in recent policy communications.
Hong Kong authorities announced plans to distribute initial stablecoin issuer licenses by March 2026. Regulators will process applications under the newly established Stablecoins Ordinance. South Korea has similarly progressed proposals for won-denominated stablecoin frameworks.
The global stablecoin market totaling $309 billion maintains over 90% concentration in U.S. dollar-pegged instruments. Japanese policymakers actively promote regulated domestic stablecoin alternatives. The Q2 2026 deployment window represents the established target date for JPYSC market availability.
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