SBI Holdings and Startale to Launch Trust Bank-Backed JPY Stablecoin in Q2 2026

SBI Holdings and Startale Group announced on February 27, 2026, the development of JPYSC, a Japanese yen stablecoin backed by SBI Shinsei Trust Bank, marking Japan’s first trust bank-backed digital asset of its kind.

Targeted for launch in the second quarter of 2026 pending regulatory approvals, the stablecoin is designed for institutional use cases including cross-border settlement, treasury management, and payments, with distribution led by SBI VC Trade and technical development by Startale.

Stablecoin Structure and Regulatory Compliance

JPYSC is structured as a trust bank-backed stablecoin, with issuance managed by SBI Shinsei Trust Bank under Japan’s regulatory framework for digital assets. This structure positions JPYSC as a regulated alternative compliant with the amendments to Japan’s Payment Services Act, which recognized fiat-pegged stablecoins as “Electronic Payment Instruments” in 2022.

SBI VC Trade, the cryptocurrency exchange arm of the SBI Group, will serve as the primary distribution partner, while Startale will lead technical development. The partners emphasized that the trust bank-backed model bolsters governance, oversight, and operational safeguards necessary for meaningful adoption in regulated environments.

The announcement states that early engagement from institutions and enterprises reflects demand for yen-denominated stablecoins across payments, treasury management, and cross-border settlement applications.

Strategic Objectives and Market Positioning

Yoshitaka Kitao, Representative Director, Chairman, and President of SBI Holdings, framed the initiative as supporting the expansion of digital financial services and strengthening the link between traditional finance and emerging digital infrastructure. “The transition to a ‘Token Economy’ where all real-world assets are tokenized and tokens permeate society as a means of settlement is now an irreversible societal trend,” Kitao stated.

The partners believe a trust bank-backed yen stablecoin can expand the role of the yen in digital finance and provide a regulated alternative in a market currently dominated by U.S. dollar-denominated stablecoins. The initiative is being developed to enable interoperability across traditional infrastructure and different blockchain networks.

Sota Watanabe, CEO of Startale Group, positioned the yen-denominated stablecoin as a key component of future digital infrastructure. “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,” Watanabe said.

Technical Development and Interoperability

Startale, which operates the Astar Network and jointly develops the Soneium blockchain through a partnership with Sony Group Corporation, will oversee technical development of JPYSC. The stablecoin is being designed to enable interoperability across traditional financial infrastructure and multiple blockchain networks.

The technical framework aims to support diverse use cases including everyday payments, AI agent-to-agent transactions, and distributions for tokenized assets, reflecting Startale’s focus on bringing more of the global economy onchain.

Japan’s Stablecoin Regulatory Landscape

JPYSC joins a growing ecosystem of regulated yen stablecoins in Japan. In October 2025, Japanese authorities approved fintech firm JPYC’s stablecoin as the country’s first legally recognized yen-backed digital asset.

Japan’s three megabanks—MUFG, SMBC, and Mizuho—have also launched stablecoin and tokenized deposit pilots spanning payments, interbank settlement, and institutional financial services. In December 2025, the Financial Services Agency officially announced its support for the stablecoin pilot project involving these banks.

The development positions Japan as one of the few major jurisdictions with a clear legal pathway for stablecoin issuance, enabling domestic financial institutions to develop compliant digital assets. This regulatory clarity allows Japanese firms to challenge the dominance of dollar-pegged tokens with regulated yen alternatives suited for treasury operations, corporate payments, and international settlement.

Regional Competition and Market Context

The announcement comes as neighboring Hong Kong advances its own stablecoin regulatory framework. On February 26, Hong Kong Financial Secretary Paul Chan announced plans to issue the first batch of stablecoin issuer licenses in March 2026, under a licensing regime that took effect in August 2025.

Both Asian financial hubs are positioning themselves as leading centers for regulated digital asset infrastructure, with Japan emphasizing trust bank-backed structures and Hong Kong pursuing a licensing approach for fiat-referenced stablecoin issuers.

FAQ: Understanding SBI’s JPYSC Stablecoin

Q: What makes JPYSC different from other stablecoins?

A: JPYSC is structured as a trust bank-backed stablecoin, with issuance managed by SBI Shinsei Trust Bank under Japan’s regulatory framework. This makes it Japan’s first trust bank-backed yen stablecoin, providing institutional-grade governance, oversight, and operational safeguards compared to dollar-denominated alternatives.

Q: When will JPYSC be available and who can use it?

A: JPYSC is targeted for launch in the second quarter of 2026, subject to regulatory approvals. The stablecoin is designed for institutional use cases including cross-border settlement, treasury management, and corporate payments, with distribution handled through SBI VC Trade.

Q: How does JPYSC fit into Japan’s broader stablecoin strategy?

A: JPYSC builds on Japan’s 2022 amendments to the Payment Services Act recognizing fiat-pegged stablecoins as electronic payment instruments. It joins approved stablecoins like JPYC and pilot programs from Japan’s three megabanks, positioning Japan as a jurisdiction with clear legal pathways for regulated digital assets.