SBI, Startale Roll Out Japan's First Trust-Structured Yen Stablecoin JPYSC

SBI Group and Startale Group on June 24 launched JPYSC, billed as Japan's first yen-denominated stablecoin built on a trust structure. The rollout comes as regulators and major financial institutions worldwide accelerate efforts to establish compliant stablecoin rails, in a market still largely dominated by U.S. dollar-backed tokens such as USDT and USDC. JPYSC is issued by SBI Shinsei Trust Bank, with reserves held and administered through a trust arrangement. SBI said the token is the first trust-based yen stablecoin to be recognized as an "electronic payment method" under Japan's Payment Services Act. SBI also emphasized that JPYSC is designed with no caps on transaction amounts or account balances, positioning it for large institutional transfers, tokenized-asset settlement, and corporate payments. SBI Holdings Chairman Yoshitaka Kitao said the move is essential as financial activity shifts on-chain. "The transition of financial functions to onchain is irreversible, creating payment methods that can be used onchain is a challenge that must be addressed as quickly as possible," he said. SBI and Startale are framing JPYSC as more than a payments token, aiming to make it a core settlement layer for Japan's expanding tokenization market. Planned use cases include yen-to-dollar liquidity pools for on-chain FX, institutional lending and borrowing, settlement for tokenized equities, bonds, real estate and fund units, merchant and business payments, lower-cost cross-border remittances, and large OTC and institutional trades. Initial distribution is limited: JPYSC can currently be used only within SBI VC Trade accounts and cannot yet be transferred to external wallets. Startale CEO Sota Watanabe said, "Onchain finance is a global trend, and we recognize it as an extremely important strategic area for Japan." He added that the technical foundation for public blockchain transfers is already in place, with remaining obstacles centered on tax treatment and regulatory approvals. The push comes as global tokenization activity accelerates and stablecoins already facilitate trillions of dollars in annual transaction volume. With U.S. stablecoin legislation advancing and more institutions testing tokenized assets, Japan is moving to keep the yen competitive in the next generation of financial infrastructure.