Coming as early as Q2! Japan's SBI will launch the Japanese Yen stablecoin "JPYSC".

Japan’s financial group SBI Holdings and blockchain company Startale Group announced today (27th) that their jointly developed Japanese yen stablecoin has been officially named “JPYSC.” The stablecoin is primarily supported by a trust bank, targeting institutional and cross-border use cases. It is scheduled for official launch in the second quarter of this year, pending regulatory approval.

According to a statement from Startale, JPYSC is Japan’s first yen stablecoin designed with a trust structure. Its issuance and asset custody will be handled by SBI Shinsei Trust Bank, fully compliant with Japan’s digital asset regulations. SBI Group’s cryptocurrency exchange SBI VC Trade will serve as the main circulation platform, while Startale will lead technology development and blockchain infrastructure integration.

The statement noted that, in a market currently dominated by dollar-pegged stablecoins, launching a regulated, trust-supported yen stablecoin will help enhance the yen’s role and visibility within the digital financial ecosystem, providing a compliant alternative for the market.

Both parties revealed that “JPYSC” has not yet gone live but has already attracted preliminary discussions with multiple institutions and companies, reflecting growing market demand for yen stablecoins in payments, financial management, and cross-border settlement scenarios.

The statement added that a trust-supported model can strengthen governance, oversight, and operational security, facilitating the deployment of stablecoin use cases within a regulated environment. It also mentioned that JPYSC aims to enable interoperability between traditional financial infrastructure and various blockchains.

Startale Group CEO Sota Watanabe emphasized that this yen stablecoin is not just a means for everyday payments but will play a central role in a “fully on-chain world.” He further pointed out that future automated payments between AI agents and the tokenization of asset income distribution will require stable, compliant, and programmable digital currencies as foundational infrastructure—scenarios that are expected to become reality soon.

On June 1, 2023, Japan officially implemented the revised Payment Services Act, defining stablecoins as a new “electronic settlement method,” lifting the ban on circulating foreign stablecoins within Japan. The law also stipulates that any business involved in the circulation and trading of stablecoins (digital currency-pegged electronic payment methods) must obtain a government-issued license.