SBI Launches Japan First Trust Backed Yen Stablecoin

Japan’s SBI Holdings and Startale Group have unveiled JPYSC, the country’s first trust bank backed yen stablecoin, targeting institutional and cross border use with a planned second quarter launch pending regulatory approval.

Key Takeaways

• SBI Holdings and Startale Group launched JPYSC, Japan’s first trust bank backed yen stablecoin.
• SBI Shinsei Trust Bank will issue and manage the stablecoin under Japanese digital asset regulations.
• The project aims to support institutional payments, treasury management, and cross border settlements.
• JPYSC is designed to offer a regulated yen alternative in a market dominated by US dollar stablecoins.

What Happened?

Japanese financial giant SBI Holdings and blockchain firm Startale Group announced the launch of JPYSC, a yen denominated stablecoin backed by a trust bank structure. The stablecoin will be issued and managed by SBI Shinsei Trust Bank, while SBI VC Trade will act as the primary distribution partner and Startale will oversee technical development.

The stablecoin is expected to go live in the second quarter of this year, subject to regulatory approval.

Japan First Trust Bank Backed Stablecoin

According to the official announcement and press release, JPYSC represents Japan’s first trust bank backed stablecoin. The issuance structure is designed to comply fully with Japanese digital asset regulations, offering enhanced governance, oversight, and operational safeguards.

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 US dollar denominated stablecoins.

By anchoring the stablecoin within a regulated trust framework, the companies aim to build confidence among institutional participants that require higher standards of compliance and risk management.

Institutional and Cross Border Focus

Unlike many retail focused crypto tokens, JPYSC is specifically designed for institutional and enterprise use cases. Early engagement from financial institutions and enterprises suggests rising demand for yen denominated digital assets across:

• Payments
• Treasury management
• Cross border settlement

The project also emphasizes interoperability with traditional financial infrastructure and multiple blockchain networks. This dual compatibility could allow JPYSC to bridge existing banking systems with on chain applications.

AI Payments and On Chain Asset Distribution

Startale leadership outlined a broader vision for the stablecoin’s future role in digital ecosystems.

Startale Group CEO Sota Watanabe said:

The statement highlights ambitions beyond standard settlement functions, positioning JPYSC as infrastructure for emerging technologies such as AI driven payments and tokenized asset distribution.

Japan Expands Its Stablecoin Strategy

Japan has been steadily advancing its regulatory framework for stablecoins. In 2022, the Japanese parliament amended the Payment Services Act to recognize fiat pegged stablecoins as Electronic Payment Instruments.

More recently, authorities approved fintech firm JPYC’s stablecoin as the country’s first legally recognized yen backed stablecoin. Japan’s three megabanks, MUFG, SMBC, and Mizuho, have also launched stablecoin and tokenized deposit pilots spanning payments, interbank settlement, and institutional financial services. In December, the Financial Services Agency formally supported the pilot project involving the three banks.

Meanwhile, regional competition is heating up, with Hong Kong preparing to issue its first batch of stablecoin issuer licenses next month.

Against this backdrop, SBI’s move signals that major financial institutions are taking a more direct role in shaping Japan’s regulated digital asset landscape.

CoinLaw’s Takeaway

In my view, this is one of the most important stablecoin developments in Japan so far. A trust bank backed structure gives JPYSC a level of credibility that many crypto native projects simply do not have. I believe institutions will feel far more comfortable using a stablecoin issued under a regulated trust framework.

I also find the focus on AI agent payments and tokenized assets particularly forward looking. In my experience covering digital finance, projects that combine regulatory clarity with real world use cases tend to gain traction faster. If executed properly, JPYSC could strengthen the yen’s position in the global digital economy.

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