SBI Holdings and Startale Unveil JPYSC — Japan’s First Trust Bank-Backed Yen Stablecoin
On February 26, 2026, SBI Holdings and Startale Group officially revealed JPYSC, a Japanese yen-denominated stablecoin fully backed by yen reserves held at SBI Shinsei Trust Bank, per The Crypto Times and Startale press release.
- Launch target: Q2 2026 (subject to regulatory approval)
- Issuer: SBI Shinsei Trust Bank (regulated trust bank)
- Primary distributor: SBI VC Trade (SBI’s crypto exchange arm)
- Technical lead: Startale Group
The partners position JPYSC as Japan’s first trust bank-backed stablecoin, designed to meet strict local digital asset regulations and offer a regulated alternative to dominant USD-pegged stablecoins (USDT, USDC).
Strategic Goals and Use Cases
SBI and Startale aim to:
- Expand the yen’s role in digital finance
- Provide institutions and enterprises with a compliant, yen-native tool for payments, treasury management, and cross-border settlement
- Enable interoperability with traditional finance infrastructure and multiple blockchains
- Support emerging on-chain use cases, including payments between AI agents and distributions for tokenized assets
Sota Watanabe, CEO of Startale Group, stated:
“Our yen-denominated stablecoin is not just a means of everyday payment — it will play a central role in a fully onchain world. In particular, we see enormous potential in enabling payments between AI agents and powering distributions for tokenized assets, both of which will soon become reality.”
Japan’s Stablecoin Regulatory Landscape
Japan has steadily built a framework for regulated stablecoins since amending the Payment Services Act in 2022 to recognize fiat-pegged stablecoins as “Electronic Payment Instruments.”
Recent milestones:
- October 2025: JPYC approved as Japan’s first legally recognized yen-backed stablecoin
- Ongoing pilots by MUFG, SMBC, and Mizuho exploring stablecoins and tokenized deposits for payments, interbank settlement, and institutional services
- December 2025: Financial Services Agency (FSA) publicly supported the megabanks’ stablecoin pilot
The JPYSC initiative aligns with this regulated, bank-centric approach — contrasting with more decentralized or offshore stablecoin models.
Regional Comparison: Hong Kong’s Stablecoin Licensing
On the same day (February 26, 2026), Hong Kong announced it will begin issuing its first batch of stablecoin issuer licenses in March 2026, per HKMA. This positions both Japan and Hong Kong as early movers in regulated fiat-backed stablecoins in Asia, potentially challenging USD dominance in cross-border digital payments.
Market & Investor Implications
- JPYSC could capture institutional demand in Asia for yen-native stable assets, especially if cross-border settlement and tokenized real-world assets gain traction.
- USD stablecoins (USDT, USDC) currently dominate (~99% of global stablecoin market cap); JPYSC aims to carve out a niche for yen-denominated use cases.
- No immediate impact on Bitcoin (BTC) or Ethereum (ETH) prices, which remain focused on macro catalysts (Jackson Hole, rate-cut expectations).
Investors should watch for:
- FSA regulatory approval timeline
- Early institutional adoption announcements
- Integration partners beyond SBI VC Trade
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