Japan’s SBI Holdings teams up with Startale on proposed yen-backed stablecoin

Japan’s push into regulated digital finance continues as SBI Holdings and Startale move to issue a yen-denominated stablecoin for global payments in 2026.

Japan’s push toward regulated digital finance is set to take a new step with plans for a fully compliant yen-backed stablecoin for both domestic and global use.

The plan was confirmed in a Dec. 16 press release by SBI Holdings and Startale Group, which announced a memorandum of understanding to jointly develop and launch the stablecoin, with a target rollout in the second quarter of 2026.

A regulated digital yen built for global use

The proposed stablecoin will be issued as a Type 3 Electronic Payment Instrument under Japan’s financial framework, a structure designed to meet strict compliance standards while allowing wider flexibility than existing electronic payment tools.

Notably, this classification means the token would not be subject to Japan’s ¥1 million cap on domestic transfers and balances, a limit that applies to many other digital payment methods.

Both firms say the stablecoin is being designed for cross-border settlement, enterprise payments, and onchain activity, allowing yen liquidity to move more easily across blockchain-based financial systems. It will give global markets access to a regulated digital yen that can operate alongside traditional banking rails.

As per the agreement, Startale will oversee the technical implementation, which includes security systems, developer tools, smart contracts, and APIs. SBI Holdings will manage market distribution, issuance, and regulatory compliance through its financial subsidiaries. 

As a licensed cryptocurrency exchange, SBI VC Trade will facilitate circulation, while Shinsei Trust & Banking, a division of the SBI group, is expected to oversee issuance and redemption.

Part of Japan’s wider stablecoin strategy

Japan has spent the past few years tightening its approach to digital assets, with stablecoin rules that require full fiat backing and oversight by licensed banks or trust companies. That framework has made the country one of the more conservative but clearer jurisdictions for regulated stablecoins.

SBI’s involvement follows that direction. The firm has steadily expanded its footprint across digital assets, from crypto trading to tokenized securities and blockchain-based settlement systems. Partnering with Startale allows it to combine regulatory infrastructure with blockchain-native development.

The companies say the yen stablecoin could support a range of use cases over time, including tokenized real-world assets, automated onchain settlement, and payments between software agents, areas that are increasingly discussed by financial institutions exploring blockchain adoption.

The stablecoin is scheduled for launch in Q2 2026, pending final regulatory approvals and system testing. Before then, the partners plan to finalize compliance structures, expand technical integrations, and work with institutional participants to prepare for distribution.