SBI Holdings to push for launch of yen stablecoin in Q2…trust bank-based model

Japan’s SBI Holdings said it has unveiled a trust bank-based yen stablecoin and is targeting a launch in the second quarter.

According to a report by The Block on the 26th (local time), SBI Holdings and Startale Group have unveiled a yen-pegged stablecoin, JPYSC. JPYSC is a trust-type stablecoin structured so that SBI Shinsei Trust Bank oversees issuance, and it complies with Japan’s digital-asset regulations. SBI VC Trade, a crypto exchange under the SBI Group, will serve as a key distribution partner, while Startale Group will handle technical development.

The two companies said that a trust bank-based yen stablecoin can offer a regulation-friendly alternative in a U.S. dollar-centric market and expand the yen’s role in digital finance. They added that interest from institutions and corporates has been confirmed from the early stages, with demand for payments, cash management and cross-border settlement.

JPYSC was designed with interoperability in mind between traditional financial infrastructure and various blockchain networks. Startale Group CEO Sota Watanabe said, “A yen stablecoin will become core infrastructure for on-chain environments beyond being a simple payment method,” adding that it has significant potential for use in areas such as payments between AI agents and the distribution of tokenized assets.

The launch is expected to take place in the second quarter of this year, subject to regulatory approval.

Meanwhile, Japan has been working to bring fiat-linked stablecoins into the regulated framework, recognizing them as “electronic payment instruments” through a 2022 amendment to the Payment Services Act. In October last year, JPYC’s yen stablecoin received the first legal recognition. The three megabanks—MUFG, SMBC and Mizuho—are also running pilots for stablecoins and tokenized deposits.