SBI Holdings, one of Japan's leading financial institutions, and Startale Group, a blockchain technology company, have launched the world's first trust bank-backed stablecoin denominated in Japanese yen through a joint venture. This digital asset, called JPYSC, is considered one of the most critical developments in the country's cryptocurrency ecosystem.
A first with trust bank guarantee
According to Startale's statement, JPYSC holds the title of the first stablecoin issued by a trust bank in Japan. The issuance process will be managed by SBI Shinsei Trust Bank in full compliance with local digital asset regulations. While the group's cryptocurrency exchange, SBI VC Trade, will act as the primary distribution partner, the entire technical development process will be the responsibility of Startale.
The two companies emphasize that this model provided by the institutional structure creates a solid foundation for lasting adoption in regulatory environments in terms of governance, supervision, and operational assurance. They also stated that there is intense interest from institutional and commercial sectors in yen-denominated stablecoins, especially in the areas of payments, treasury management, and cross-border settlement.
From AI Agents to Tokenized Assets
Startale Group CEO Sota Watanabe presented his vision for the project in a rather ambitious way. "Our yen-denominated stablecoin is not just an everyday payment method; it will be at the heart of a truly on-chain world," said Watanabe, noting that they see great potential, especially in payments between AI agents and the distribution of tokenized assets. According to him, these two areas will soon become a tangible reality.
JPYSC is also designed to enable interoperability between traditional financial infrastructure and different blockchain networks. In this way, it aims to be part of integrated financial systems not only in domestic markets but also on a global scale. The project is planned to be launched in the second quarter, after obtaining the necessary regulatory approvals.
Japan's Stablecoin Move
This development is a new link in Japan's cumulative effort in the process of integrating into digital finance. In 2022, the Japanese parliament amended the Payment Services Act, defining stablecoins pegged to fiat currencies as "Electronic Payment Instruments" and providing a legal framework for the sector.
Last October, fintech company JPYC gained the distinction of becoming Japan's first legally recognized yen-backed stablecoin. Meanwhile, the country's three largest banks, MUFG, SMBC, and Mizuho, launched pilot projects for stablecoins and tokenized deposits covering payments, interbank reconciliation, and corporate financial services. Last December, the Financial Services Agency publicly announced its official support for the pilot project involving these three banks. The dynamism in the region is not limited to Japan. Neighboring Hong Kong also announced this week that it is preparing to issue its first stablecoin licenses next month.
Yen as an alternative to dollar hegemony
Another critical point particularly emphasized by the companies is the claim that JPYSC will undertake a geopolitical and financial mission. In an environment where the current stablecoin market is dominated by US dollar-denominated assets, the goal of offering a regulated alternative that will expand the role of the yen in digital finance gives the project a significance far beyond a purely technical initiative.
