SBI Group, DigiFT, and Startale Group announced a joint initiative demonstrating how JPYSC, a trust-based Japanese yen stablecoin, can support the complete lifecycle of tokenized securities. The companies completed two proof-of-concept trials on an Ethereum testnet environment, showcasing instant settlement for tokenized fund subscriptions and automated, on-chain dividend distributions. The initiative aims to solve a persistent bottleneck in the digital asset space: while tokenized real-world assets have grown rapidly, cash settlements and dividend payouts typically still rely on traditional, slower banking infrastructure. By integrating JPYSC as a regulated settlement layer, the partners demonstrated how digital capital markets can achieve near-instant settlement finality and continuous, automated operations.
SBI, DigiFT, and Startale Complete Two Testnet Trials Using JPYSC
The partners conducted two distinct, structure-agnostic demonstrations to prove the capabilities of JPYSC. The first trial showed how the stablecoin could bypass traditional multi-day settlement cycles, allowing near-instant finality for fund subscriptions to reduce counterparty risk and boost capital efficiency. The second trial utilized smart contracts to automatically calculate and distribute dividends directly to eligible token holders' wallets once a distribution registry was finalized.
The initiative represents one of the first times in Asia that a testnet token representing a regulated Japanese yen stablecoin has been integrated into both primary settlement and secondary income distribution.
SBI and DigiFT Tokenize $1.3 Billion SBI Japan High Dividend Equity Fund
As part of the initiative, SBI Group and DigiFT are working to tokenize the SBI Japan High Dividend Equity Fund. The fund, managed by SBI Asset Management, is one of Japan's top public equity strategies with approximately $1.3 billion (¥200 billion) in assets under management.
"While the asset management industry has made significant progress in reducing the costs of ETFs and mutual funds, there remains considerable room for improvement in the market infrastructure supporting trading, settlement, and distribution," said Tomoya Asakura, CEO of SBI Global Asset Management. Asakura added that the technologies could streamline operations, enhance investor experience, and strengthen the global competitiveness of Japan's capital markets.
"The future of capital markets will be beyond simply tokenizing assets," said Sota Watanabe, CEO of Startale Group. "This proof of concept demonstrates how regulated stablecoins like JPYSC can power everything from instant settlement to programmable dividend distribution, laying the foundation for a more efficient, transparent, and interoperable financial system."
DigiFT founder and CEO Henry Zhang emphasized that interoperability is critical to bringing institutional tokenization to scale. "This proof of concept shows how regulated stablecoins like JPYSC can plug directly into the operating model behind manager-led, tokenized funds," Zhang said.
Partners Plan DeFi Integration With Morpho and Gauntlet
Looking ahead, the three firms plan to explore integrating tokenized Japanese equities with institutional decentralized finance platforms. Collaborations with ecosystem partners such as Morpho and Gauntlet are being considered to test advanced use cases, including collateralized lending and programmable, on-chain asset management within regulated frameworks.
FAQ
What did SBI Group, DigiFT, and Startale Group demonstrate with JPYSC?
The three companies completed two proof-of-concept trials on an Ethereum testnet environment. The first trial demonstrated instant settlement for tokenized fund subscriptions using JPYSC, bypassing traditional multi-day settlement cycles. The second trial used smart contracts to automatically calculate and distribute dividends directly to eligible token holders' wallets once a distribution registry was finalized.
What fund are SBI and DigiFT tokenizing?
SBI Group and DigiFT are working to tokenize the SBI Japan High Dividend Equity Fund, managed by SBI Asset Management. The fund is one of Japan's top public equity strategies with approximately $1.3 billion (¥200 billion) in assets under management.
