SBI Holdings and Startale Group have introduced JPYSC, a Japanese yen stablecoin backed by SBI Trust Bank. The project aims to create a regulated, on-chain version of the yen that institutions and Web3 builders can actually use at scale.
How JPYSC Works and Who Backs It
SBI designs JPYSC as a one‑to‑one yen stablecoin and fully backs it with cash and highly liquid yen‑denominated assets held at an SBI trust bank. The trust structure keeps client funds ring‑fenced under Japan’s trust banking law, which gives holders clear legal claims on the underlying yen rather than just a corporate promise.
SBI handles issuance, redemptions, and reserve management, while Startale provides the blockchain layer and developer tooling. The partners plan to issue JPYSC on multiple public chains, with Startale’s Sony‑backed infrastructure expected to support both enterprise use cases and open DeFi integrations.
Unlike many offshore yen tokens, the JPYSC stablecoin is structured to comply with Japan’s revised Payment Services Act and stablecoin guidelines. That means strict KYC for direct issuers and clear rules on who can distribute the token and in what contexts.
Why SBI and Startale Are Pushing a Regulated Yen Stablecoin
Japan has encouraged “legally issued” stablecoins by allowing licensed banks, trust banks, and certain fund transfer companies to mint them. SBI already runs a wide financial stack, from securities and banking to crypto exchanges and RWA experiments, so a trust‑bank yen stablecoin fits naturally into its broader digital asset strategy.
Startale, which works closely with the Astar Network and Sony, aims to make JPYSC the default yen liquidity for Japanese Web3 apps, gaming, and tokenized real‑world assets. With a fully regulated yen coin, local projects no longer need to rely on offshore stablecoins that fall into a gray zone under Japanese rules.
For institutions, JPYSC offers a yen instrument that behaves like cash on-chain while staying inside the country’s regulatory perimeter. That can support faster settlement between financial institutions, cross‑border payments involving Japan, and structured products built on tokenized yen flows.
If JPYSC gains traction, it could become a base asset for Japanese DeFi, centralized exchanges, and payment apps that want a compliant yen rail. Merchants and fintechs could use it to settle in real time without waiting for bank transfers that only clear during business hours.
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