Japan’s SBI Holdings Debuts Trust-Backed JPYSC Token

TLDR

• SBI Holdings and Startale Group introduced JPYSC as a trust bank-backed yen stablecoin targeting a Q2 2026 launch.
• SBI Shinsei Trust Bank will issue JPYSC with full yen reserves under Japan’s Payment Services Act.
• SBI VC Trade will distribute the stablecoin through its licensed crypto exchange platform.
• Startale Group is leading the technical development and blockchain integration of JPYSC.
• Lawmakers approved rules allowing trust stablecoin issuers to invest up to 50 percent of reserves in government bonds.

SBI Holdings and Startale Group introduced JPYSC, a yen-pegged stablecoin issued by SBI Shinsei Trust Bank. The partners target a Q2 2026 launch pending regulatory approval. They structured the token under Japan’s trust bank framework to ensure direct yen reserves and regulatory compliance.

SBI Holdings and Startale Group Launch JPYSC Under Trust Bank Framework

SBI Holdings and Startale Group confirmed JPYSC will operate as an Electronic Payment Instrument under Japan’s Payment Services Act. SBI Shinsei Trust Bank will issue the token and hold full yen reserves. The structure places JPYSC in a different category than JPYC, which functions as a prepaid payment instrument.

SBI VC Trade will distribute JPYSC through its licensed crypto exchange platform. Startale Group will oversee the technical development and blockchain integration. The company leads the Astar Network and maintains ties with Sony. The partners stated that the token will support interoperability across blockchain networks and existing financial systems.

Startale Group CEO Sota Watanabe outlined the project’s scope in a public statement. He said, “Our yen-denominated stablecoin is not just a means of everyday payment.” He added, “It will play a central role in a fully onchain world.” He also said the team sees “enormous potential in enabling payments between AI agents and powering distributions for tokenized assets.”

Japan revised its regulatory framework in 2022 to define stablecoins as Electronic Payment Instruments. Lawmakers restricted issuance to licensed banks, trust companies, and fund transfer providers. The framework requires issuers to maintain reserves and comply with oversight standards.

In March 2025, lawmakers passed a bill allowing trust stablecoin issuers to invest up to 50% of reserves in short-term government bonds. Japan’s Financial Services Agency continues to supervise stablecoin approvals. The agency plans to reclassify crypto assets under the Financial Instruments and Exchange Act.

JPYSC Targets Institutional Settlement and Cross-Border Use

The partners stated that JPYSC will serve both digital payments and tokenized asset settlements. They designed the token to bridge traditional banking rails with Web3 infrastructure. The project aims to enable regulated yen transfers on public blockchain networks.

Japan’s three megabanks, MUFG, SMBC, and Mizuho, received approval from the Financial Services Agency for a joint stablecoin pilot. Authorities have described 2026 as a “Digital Year” for financial reforms. The Finance Minister reiterated that timeline in recent policy statements.

Hong Kong confirmed plans to issue its first stablecoin issuer licenses in March 2026. Regulators will grant approvals under the new Stablecoins Ordinance. South Korea has also advanced proposals for won-denominated stablecoins.

More than 90% of the $309 billion stablecoin market remains pegged to the U.S. dollar. Japanese policymakers have encouraged regulated domestic alternatives. The Q2 2026 launch window now stands as the next scheduled milestone for JPYSC.

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