SBI Group Launches Japan's First Trust Bank-Backed Yen Stablecoin JPYSC

Overview of the JPYSC Launch

SBI Group, in partnership with Startale Group, officially launched JPYSC on June 24, 2026. The stablecoin is issued by SBI Shinsei Trust Bank and initially distributed through SBI VC Trade, the group's cryptocurrency exchange. This structure provides token holders with statutory claims on reserves, offering stronger legal protections compared to earlier models.

JPYSC maintains a 1:1 peg to the Japanese yen, with reserves managed under a trust framework. This includes bank deposits and potentially up to 50% in Japanese Government Bonds. The stablecoin operates as a Type III electronic payment instrument under Japan's amended Payment Services Act, removing the ¥1 million transaction and balance limits that apply to fund-transfer-type stablecoins.

Strategic Importance and Regulatory Context

Japan enacted stablecoin legislation in 2023, positioning itself ahead of many jurisdictions in creating a clear framework for digital assets. JPYSC represents the first use of the trust-bank model enabled by these rules. This approach separates reserves from the issuer's balance sheet, providing additional safeguards for users.

The launch occurs as Japanese authorities and institutions work to build domestic alternatives to dominant dollar-backed stablecoins like USDT. Observers note growing interest in yen-denominated options for on-chain settlements to reduce reliance on foreign currency infrastructure.

Technical Infrastructure and Partnerships

Startale Group provided the blockchain infrastructure for JPYSC. The project builds on their expertise in institutional blockchain solutions, including development of Strium L1. While initially available only within SBI VC Trade accounts, technical preparations for transfers to external wallets and public chain circulation are complete, pending final regulatory and tax clarifications.

SBI Holdings maintains connections in the broader crypto ecosystem, including partnerships related to Ripple. The stablecoin launch aligns with efforts to integrate traditional finance with on-chain systems.

Potential Use Cases

Developers and the issuing groups highlight several applications for JPYSC:

Retail access is planned for a later phase once regulatory and tax policies are further clarified. A lending service for JPYSC is also under consideration through SBI VC Trade.

Market Context and Competition

JPYSC enters a landscape where dollar stablecoins hold significant market share in Asia. Previous yen stablecoins, such as JPYC, operated under different regulatory categories with transaction limits. Japan's three major banks (MUFG, SMBC, and Mizuho) are also developing their own stablecoin project, with commercial operations targeted for fiscal year 2026.

The $63 million funding round for Startale Group, led by SBI with participation from Sony, underscores institutional backing for the underlying technology.