SBI Holdings and Startale to launch Japan’s first trust bank-backed yen stablecoin by Q2 2026

SBI Holdings and blockchain firm Startale Group have confirmed plans to launch JPYSC, a yen stablecoin that will be issued by SBI Shinsei Trust Bank making it the first yen stablecoin in Japan backed by a trust bank — targeting a Q2 2026 launch pending regulatory approval.

According to a joint announcement, the yen stablecoin will be issued by SBI Shinsei Trust Bank, making JPYSC the first yen stablecoin in Japan to be backed by a trust bank under the country’s trust banking system.

The structure places the project squarely inside Japan’s regulated financial perimeter, an approach that contrasts with many offshore-issued stablecoins circulating globally.

Built for Institutions, Not Retail Speculation

The companies say the yen stablecoin is being engineered for banks, financial institutions, and large corporations rather than everyday retail users. JPYSC will be fully backed 1:1 with Japanese yen held in trust accounts, aligning with Japan’s strict standards for electronic payment instruments.

SBI described the yen stablecoin as infrastructure for institutional finance, not a trading token. “This initiative is about connecting traditional finance to blockchain rails in a compliant and scalable way,” the company said, adding that JPYSC is intended to streamline settlement flows that currently rely on slower, costlier cross-border banking systems.

Japan’s Type III Framework Provides Legal Clarity

A defining feature of the yen stablecoin project is its operation under Japan’s Type III electronic payment instrument framework. The classification, introduced as part of Japan’s evolving digital asset rules, is designed to provide legal certainty for non-bank payment instruments while imposing clear obligations on issuers.

Under this framework, the yen stablecoin benefits from defined consumer protections, reserve requirements, and oversight mechanisms. Industry participants say this clarity has been critical in attracting institutional interest, particularly among firms that previously avoided crypto-linked products due to regulatory ambiguity.

Roles Split Between Finance and Technology

Distribution of the yen stablecoin will be handled by SBI VC Trade, SBI’s digital asset subsidiary. Meanwhile, Startale Group is leading the blockchain development, focusing on enterprise-grade performance capable of handling high transaction volumes and settlement finality requirements.

Startale said the system has been designed for interoperability, allowing the yen stablecoin to connect blockchain networks with existing banking infrastructure. That design choice reflects growing demand from corporations seeking to integrate tokenized payments without rebuilding their financial operations from scratch.

Cross-Border Payments and Treasury Use Cases

The primary use cases for the yen stablecoin include cross-border payments, treasury management, and tokenized asset settlement. By settling transactions on blockchain rails, institutions could potentially reduce settlement times from days to minutes while maintaining compliance with Japan’s financial laws.

Executives involved in the project said several financial institutions and large corporations have already expressed interest in using the yen stablecoin once regulatory approval is finalized. Those discussions, they noted, have focused on efficiency gains rather than speculative upside.

A Signal of Japan’s Broader Digital Finance Ambitions

Japan has positioned itself as one of the more proactive major economies in regulating digital assets. By anchoring the yen stablecoin within the trust bank system, regulators are effectively signaling that blockchain-based money can coexist with traditional finance when proper safeguards are in place.

Market observers see the project as a potential model for other jurisdictions exploring regulated stablecoins tied to sovereign currencies. Unlike dollar-pegged stablecoins that dominate global crypto markets, a yen stablecoin backed by a Japanese trust bank could appeal to institutions seeking exposure to Asia-Pacific settlement flows.

Timeline and Regulatory Review

The official launch of the yen stablecoin is targeted for the second quarter of 2026, subject to regulatory approval. Authorities must complete a review process covering issuance, custody, and operational controls before JPYSC can go live.

SBI and Startale said the extended timeline reflects a deliberate approach. Rather than rushing to market, the partners aim to ensure the yen stablecoin meets both domestic compliance standards and international expectations for institutional-grade financial products.

Branding Trust Into the Token

Even the branding of the yen stablecoin has been designed with institutions in mind. The blue logo unveiled for JPYSC is intended to convey trust, stability, and transparency—qualities the companies believe are essential for adoption by conservative financial players.

While branding alone will not determine success, executives said it reflects the broader philosophy behind the project: positioning the yen stablecoin as a neutral settlement tool rather than a speculative crypto asset.

If approved, JPYSC would mark a milestone for Japan’s digital finance sector and could accelerate adoption of regulated stablecoins across Asia. For SBI Holdings, the yen stablecoin aligns with its broader strategy of bridging legacy finance and blockchain infrastructure. For Startale Group, it offers a high-profile demonstration of enterprise blockchain capabilities.

The bigger question is whether institutional users will scale usage beyond pilot programs. If they do, the yen stablecoin could become a foundational layer for tokenized finance in Japan—quietly transforming how yen-denominated value moves across borders in the years ahead.