SBI Holdings And Startale Group Target Q2 2026 Launch For Japan’s First Trust Bank-Backed Yen Stablecoin

Japan Launches First Trust Bank-Backed Yen Stablecoin For Institutions And Cross-Border Payments

Japanese financial giant SBI Holdings and blockchain infrastructure firm Startale Group have unveiled JPYSC, a Japanese yen-pegged stablecoin aimed at corporate and cross-border use cases.

Designed as the country’s first trust bank-backed stablecoin, JPYSC will be issued by SBI Shinsei Trust Bank under Japan’s regulatory framework, positioning the yen as a regulated alternative to US dollar-pegged stablecoins.

Who Will Issue And Distribute JPYSC

The issuance of JPYSC will be fully managed by SBI Shinsei Trust Bank in compliance with local digital asset regulations.

Distribution will be handled by the group’s cryptocurrency exchange, SBI VC Trade, while Startale Group will lead technical development.

The project is scheduled to launch in the second quarter of 2026, subject to regulatory approval.

Why Japan Is Targeting Yen-Based Stablecoins

Early interest from institutional investors and corporations suggests strong demand for yen-denominated digital assets across payments, treasury management, and cross-border settlement transactions.

SBI Holdings’ Representative Director and President, Yoshitaka Kitao, highlighted that JPYSC aims to “support the expansion of digital financial services and strengthen the link between traditional finance and emerging digital infrastructure.”

The trust bank-backed structure is designed to provide governance, oversight, and operational safeguards suitable for regulated environments.

How JPYSC Will Function Across Financial And Digital Systems

The stablecoin has been structured to support interoperability between conventional financial infrastructure and multiple blockchain networks.

Startale Group CEO Sota Watanabe explained,

“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.”

Japan’s Wider Stablecoin Strategy

Japan has been steadily creating a legal framework for regulated digital assets.

Amendments to the Payment Services Act in 2022 formally recognised fiat-backed stablecoins as “Electronic Payment Instruments.”

Last October, fintech firm JPYC received approval for Japan’s first legally recognised yen-backed stablecoin.

The country’s three megabanks, MUFG, SMBC, and Mizuho, have also piloted stablecoins for payments, interbank settlements, and institutional financial services, with backing from the Financial Services Agency.

Will JPYSC Challenge Dollar Dominance

With JPYSC, Japan aims to provide a regulated yen alternative in a market largely dominated by US dollar-pegged tokens.

The project targets high-volume enterprise and institutional use, including cross-border payments and tokenised asset settlements, offering an onchain solution integrated with existing financial systems.

By bridging traditional banking and blockchain infrastructure, the initiative reflects Japan’s ambition to strengthen the yen’s role in digital finance.

How The Project Connects To Japan’s Digital Asset Ecosystem

Startale, known for operating Japan’s largest public blockchain network Astar, also develops the Soneium blockchain in partnership with Sony Group Corporation.

Combining institutional-grade compliance with enterprise-ready settlement capabilities, JPYSC is positioned as a foundation for a globally trusted digital yen, ready to integrate with both domestic and international financial systems.