Japan’s SBI Holdings and Startale Group unveiled their Japanese yen-denominated stablecoin, JPYSC, which is expected to launch in the second quarter of this year.
JPYSC is said to be Japan’s first trust-based stablecoin, with issuance managed by SBI Shinsei Trust Bank
Japan's SBI Holdings and Startale Group unveiled JPYSC, a trust bank-backed Japanese yen stablecoin for institutional and cross-border use cases.
According to Startale's press release, JPYSC is Japan's first trust bank-backed stablecoin, with issuance managed by SBI Shinsei Trust Bank in compliance with local digital asset regulations. SBI VC Trade, the group's crypto exchange, will act as the primary distribution partner while Startale will lead technical development.
The partners believe a trust bank-backed yen stablecoin can expand the role of the yen in digital finance and provide a regulated alternative in a market currently dominated by U.S. dollar-denominated stablecoins," the press release said.
The two companies said early engagement from institutions and enterprises reflects demand for yen-denominated stablecoins across payments, treasury management, and cross-border settlement. A trust bank-backed model bolsters governance, oversight, and operations safeguards for meaningful adoption in regulated environments, they added.
The JPYSC initiative is also being developed to enable interoperability across traditional infrastructure and different blockchain networks, according to the statement.
Our yen-denominated stablecoin is not just a means of everyday payment - it will play a central role in a fully onchain world," said Startale Group CEO Sota Watanabe. "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."
JPYSC is expected to launch in the second quarter of this year, subject to regulatory approvals.
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In recent years, Japan has been putting in efforts to integrate regulated stablecoins into its mainstream financial system. In 2022, the Japanese parliament passed amendments to the Payment Services Act that recognized fiat-pegged stablecoins as "Electronic Payment Instruments.
Last October, Japanese authorities approved fintech firm JPYC's stablecoin of the same name, as the country's first legally recognized yen-backed stablecoin.
Japan's three megabanks — MUFG, SMBC, and Mizuho — also kicked off stablecoin and tokenized deposit pilots spanning payments, interbank settlement, and institutional financial services. In December, the Financial Services Agency officially announced its support for the stablecoin pilot project involving those three banks.
Meanwhile, neighboring Hong Kong announced on Wednesday that it will issue the first batch of stablecoin issuer licenses next month.
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