SBI Holdings, one of Japan’s largest financial conglomerates, is preparing to roll out JPYSC, a regulated stablecoin backed by the Japanese yen. This initiative is being touted as a significant step forward in Japan’s expanding digital payments and stablecoin market, drawing attention for its focus on domestic regulatory compliance.
Issuance and distribution details clarified
According to the project timeline, JPYSC is scheduled for launch at the end of the second quarter of 2026. Issuance and redemption of the token will be handled by SBI Shinsei Trust & Banking, while its distribution will take place through SBI VC Trade, contingent on regulatory approval. SBI VC Trade operates as the group’s dedicated crypto asset trading platform.
Unlike overseas stablecoin models, JPYSC is being built entirely within Japan’s regulated framework as a trust-based yen stablecoin. This localized approach is a key factor in the project’s prominence, signaling a shift toward heightened oversight and consumer protection in digital assets.
The token is positioned as a yen-backed stablecoin operating within a regulated domestic infrastructure, with its issuance and redemption processes anchored to the trust bank model.
Japan’s regulatory framework in the spotlight
JPYSC is classified as a Type 3 Electronic Payment Instrument under Japan’s Payment Services Act. This legal structure not only lends regulatory legitimacy to JPYSC but also ties its issuance to the trust banking system, placing SBI Shinsei Trust & Banking at the center of operations.
One notable advantage of this model is the ability to process transactions above the local transfer cap of one million yen (approximately $6,500), which has historically limited the scope of large-scale corporate transfers through lower-tier payment tools.
Mini glossary: A Type 3 Electronic Payment Instrument refers to a class of digital payment tools regulated in Japan, which mandates that issuance, custody, and redemption be managed by licensed entities meeting strict regulatory requirements.
SBI Holdings is developing the project together with Startale Group, following the memorandum of understanding they signed in December 2025. Startale is responsible for technical aspects such as smart contracts, API infrastructure, and compliance-driven systems.
Expanding use cases and partnership network
JPYSC is set to be used across global settlements, tokenized asset transfers, and corporate payment flows. These applications are aligned with Japan’s broader strategy to integrate regulated digital assets into its payment systems and financial market infrastructure.
SBI Holdings has long been active in blockchain and digital assets. In addition to running SBI VC Trade, the group has participated in XRP Ledger initiatives via SBI Ripple Asia. SBI Remit’s collaboration with Fasset for stablecoin-based remittance services has also enhanced cross-border payment capabilities.
SBI is expanding USDC distribution in Japan through a partnership with Circle, while its collaboration with Chainlink encompasses tokenization of real-world assets, proof-of-reserve systems, regulated stablecoins, and cross-chain finance infrastructure.
JPYSC will enter a market where JPYC, introduced in 2025, currently enjoys a first-mover advantage. However, analysts note that SBI’s extensive network spanning banking, trust services, and securities could bolster institutional adoption and liquidity if demand accelerates.
Rising regulation and institutional interest in Japan
SBI’s preparations come as Japan is overhauling its crypto asset and stablecoin regulations. Authorities are moving to bring digital assets under the regulatory umbrella of the Financial Instruments and Exchange Act, seeking to create clearer rules for investment products, market practices, and institutional participation.
Japan is also poised to reform taxation on crypto gains, with proposals to lower tax rates—currently reaching up to about 55%—to a flat 20% depending on the final implementation. Major banks including MUFG, SMBC, and Mizuho are jointly developing a new stablecoin solution, while some banks test insured or yield-linked models. In a sign of growing institutional confidence, Japanese pension funds are reportedly considering limited allocations to crypto assets, with the National Business World Corporate Pension Fund planning up to 1% exposure from the 2026 fiscal year.
