- SBI Holdings and Startale plan to launch JPYSC in Q2, pending regulatory approval.
- The issuance will be handled by SBI Shinsei Trust Bank under Japan’s stablecoin law.
- The structure puts reserves inside a regulated trust bank, targeting institutional payments.
SBI Holdings and Startale Group have introduced JPYSC, a Japanese yen stablecoin backed by a trust bank structure.
While issuance will be managed by SBI Shinsei Trust Bank under Japan’s digital asset rules, distribution will run through SBI VC Trade, the group’s crypto exchange. Meanwhile, Startale will handle technical development.
The launch is scheduled for the second quarter of this year, subject to regulatory approval. The companies state that JPYSC is Japan’s first trust bank-backed stablecoin.
The structure places reserves and issuance under a regulated trust bank. The goal is to provide a compliant alternative to US dollar stablecoins, which dominate over 99% of global stablecoin supply, according to the Bank for International Settlements.
Target: Institutional Payments and Cross-Border Settlement
JPYSC is built for institutional use, treasury management, and cross-border settlement. The partners cite early engagement from institutions and enterprises that want yen-denominated settlement rails.
The model relies on trust bank oversight to meet compliance standards in regulated environments. The stablecoin is also designed to connect traditional financial infrastructure with multiple blockchain networks.
Startale CEO Sota Watanabe said that the token will support a fully on-chain economy. The firm sees future use in payments between AI agents and the distribution of tokenized assets.
Japan’s Stablecoin Framework Expands
Japan amended its Payment Services Act in 2022 and formalized rules in 2023. Fiat-backed stablecoins are recognized as Electronic Payment Instruments. Issuers must hold reserves in legal tender and operate under licensed financial institutions or registered money transfer agents.
In October 2025, JPYC became the first legally recognized yen-backed stablecoin. JPYC tokens are fully convertible to yen and backed by domestic savings and Japanese government bonds.
The company aims to issue 10 trillion yen, or about $66 billion, over three years. It does not plan to charge transaction fees at the start. Revenue will come from interest on Japanese government bond holdings.
Earlier today, JPYC Inc. raised 1.78 billion yen, about $11.9 million, in a Series B round led by software firm Asteria. The capital will expand ecosystem tools and Web3 integrations. JPYC operates on Avalanche, Ethereum, and Polygon.
Japan’s three megabanks, i.e., MUFG, SMBC, and Mizuho, have also launched stablecoin and tokenized deposit pilots across payments, interbank settlement, and institutional finance. In December, the Financial Services Agency announced support for the joint pilot.
Related: Unfolding Events in Japan are Responsible for the Shake-Up in Global Markets—Analyst
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
