Japanese financial conglomerate SBI Group launched its trust-based stablecoin JPYSC on Wednesday with Singapore-based fintech company Startale Group. SBI processed the first issuance today, with SBI Shinsei Trust Bank managing issuance and licensed crypto exchange SBI VC Trade handling distribution. Japan has been integrating regulated stablecoins into its mainstream financial system, with authorities approving JPYC's stablecoin last October as the country's first legally recognized yen-backed stablecoin.
SBI Shinsei Trust Bank Manages Reserve Assets
JPYSC represents Japan's first issuance of a trust-based stablecoin structure in which reserve assets are managed by a trust bank, according to SBI's press release. Unlike previously launched fund-transfer-type stablecoins, JPYSC is not subject to the 1 million yen transaction and balance limitations applicable to such instruments. SBI stated that the company expects JPYSC to attract retail and corporate users through lower transaction costs and support for block trades. The stablecoin has the potential to serve as a yen-denominated base asset for onchain forex markets, institutional lending, and settlement for tokenized real-world assets, among other use cases, according to the release.
JPYSC Classified as Electronic Payment Instrument Under Payment Services Act
SBI stated that JPYSC is Japan's first trust bank-backed yen stablecoin and the first of its kind to be classified as an electronic payment instrument under the Payment Services Act. "JPYSC aims to establish a yen-denominated settlement and liquidity infrastructure for domestic and international onchain financial markets," SBI wrote in the release.
SBI VC Trade Limits Availability Until Regulatory Clarity
JPYSC's availability will be limited to SBI VC Trade accounts until the regulatory and tax treatment of the stablecoin is clarified, according to the press release.
Japan Approved JPYC Stablecoin Last October
Last October, Japanese authorities approved fintech firm JPYC's stablecoin as the country's first legally recognized yen-backed stablecoin. Japan's three megabanks — MUFG, SMBC, and Mizuho — are currently working on a joint stablecoin project. Earlier this month, they announced plans to begin live commercial transactions of the stablecoin during fiscal year 2026.
FAQ
What did SBI Group launch on Wednesday?
SBI Group launched its trust-based stablecoin JPYSC on Wednesday with Singapore-based fintech company Startale Group, processing the first issuance today.
How does JPYSC differ from fund-transfer-type stablecoins?
Unlike previously launched fund-transfer-type stablecoins, JPYSC is not subject to the 1 million yen transaction and balance limitations applicable to such instruments, according to SBI's press release.
When did Japanese authorities approve JPYC's stablecoin?
Last October, Japanese authorities approved fintech firm JPYC's stablecoin as the country's first legally recognized yen-backed stablecoin.
