- JPYSC stable coin has been unveiled in Japan through a partnership between SBI and Startale.
- Stablecoin is restricted to the SBI VC Trade account awaiting regulatory approval.
- Potential future uses include asset settlement, lending markets, and cross-border transactions.
Stablecoin JPYSC was launched in Japan following the issuance of the first yen-denominated crypto asset backed by trust banks. JPYSC stablecoin becomes the first stablecoin in Japan that will be supported by trust banks, whereby SBI Shinsei Trust Bank will manage the reserve assets, while SBI VC Trade will distribute the tokens.
The rollout comes as financial institutions in Japan continue working on frameworks for digital payments and tokenized financial markets, while regulators evaluate how stablecoins fit within existing legal and tax systems.
Source: BSCN
Although the stablecoin has been issued and is operational within SBI’s ecosystem, its circulation remains limited as authorities continue to review several regulatory and tax matters related to broader public-chain usage.
According to information released by the companies, JPYSC is structured as a trust-based stablecoin backed by reserves managed by a trust bank.
SBI stated that the model differs from fund-transfer-type stablecoins currently operating in Japan because it is not subject to the transaction and balance limitations that apply to those instruments.
The company said the structure allows the stablecoin to support larger transaction volumes and settlement activities.
The launch was carried out through cooperation between several entities within the SBI Group and Startale Group. SBI Shinsei Trust Bank oversees reserve management, while SBI VC Trade, a licensed cryptocurrency exchange, distributes the stablecoin to users.
Startale Group participated in the blockchain development and integration process that supports the digital asset’s operation on Ethereum.
JPYSC Stablecoin Begins With Limited Availability
Despite the launch, access to JPYSC remains restricted. The stablecoin is currently available only to customers holding accounts with SBI VC Trade. Users are not yet able to transfer JPYSC to external wallets or move the asset freely across public blockchain networks.
Startale Group Chief Executive Officer Sota Watanabe stated that the technical and operational preparations required for circulation on a public blockchain have already been completed.
However, the companies indicated that broader availability will depend on the clarification of legal, regulatory, and tax treatment related to the stablecoin.
The firms said they are working with relevant authorities and regulators regarding the next phase of implementation.
While the country has established legal frameworks for digital assets, certain operational questions related to stablecoin transfers and taxation continue to be addressed by regulators.
Structure Designed Around Trust-Bank Reserve Management
SBI described JPYSC as Japan’s first trust bank-backed yen stablecoin and the first trust-type stablecoin issued under the country’s electronic payment instrument framework established by the Payment Services Act.
The trust-bank model places reserve management under SBI Shinsei Trust Bank. According to SBI, this structure differs from alternative stablecoin models because reserve assets are managed through a trust institution rather than through mechanisms commonly used by fund-transfer service providers.
The company stated that the design was intended to support settlement functions within digital financial markets while maintaining compliance with Japan’s regulatory requirements for electronic payment instruments.
SBI Holdings Chairman and Chief Executive Officer Yoshitaka Kitao said the development reflects the increasing movement of financial activities onto blockchain-based infrastructure.
He stated that payment systems capable of functioning in on-chain environments remain an area requiring further development.
Potential Uses Extend Beyond Retail Transactions
The companies identified several potential applications for JPYSC once broader circulation becomes available. According to SBI and Startale, the stablecoin could be used as a settlement asset in yen-denominated on-chain markets.
Among the use cases cited were foreign exchange liquidity pools, institutional lending markets, settlement for tokenized real-world assets, over-the-counter transactions, cross-border remittances, and retail payments. SBI also stated that the stablecoin could support block trades and lower transaction costs in certain financial activities.
In addition, SBI VC Trade said it plans to introduce a lending service involving JPYSC in the future. Further details regarding the timeline and operational framework of the service have not yet been disclosed.
The companies stated that they view the stablecoin as infrastructure intended to support settlement and liquidity functions within on-chain financial markets that operate using yen-denominated assets.
Launch Takes Place Amid Broader Stablecoin Activity in Japan
The introduction of JPYSC comes during a period of continued development in Japan’s stablecoin sector. In October 2025, Japanese authorities approved the stablecoin issued by fintech company JPYC, making it the country’s first legally recognized yen-backed stablecoin.
At the same time, Japan’s three major banking groups, MUFG, SMBC, and Mizuho have been working on a separate stablecoin initiative. Earlier this month, the banks announced plans to begin live commercial transactions involving their joint stablecoin project during fiscal year 2026.
SBI also recently expanded its involvement in stablecoin-related activities through a partnership with Circle, the issuer of USDC. The company has continued to participate in multiple projects focused on regulated digital asset infrastructure.
