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

SBI Group and Startale Group launched JPYSC on June 24, 2026 – the first yen-pegged stablecoin issued under Japan's trust bank model with full Financial Services Agency (FSA) approval.

The token is issued by SBI Shinsei Trust Bank and distributed through SBI VC Trade, the group's crypto exchange. Reserves are held in segregated accounts and can include deposits plus up to 50% in Japanese Government Bonds. That split opens a yield channel that earlier prepaid stablecoin models could not offer.

JPYSC is classified as a Type III Electronic Payment Instrument under Japan's amended Payment Services Act. The classification carries no daily or remittance caps – unlike the Type II prepaid model used by competing stablecoin JPYC, which faces a 1 million yen daily limit. Japan became the first G7 country to pass comprehensive stablecoin legislation through its 2022 Payment Services Act and Banking Act amendments. JPYSC is the first token to use the trust-bank framework those laws created.

The launch follows a December 2025 memorandum of understanding between SBI Holdings and Startale. By February 2026, Startale had unveiled Strium L1, an institutional blockchain expected to serve as the primary settlement layer for JPYSC. In March, Startale closed a $63 million Series A, with SBI leading at $50 million and Sony contributing $13 million. SBI VC Trade began distributing Ripple's RLUSD in March, validating the distribution infrastructure before JPYSC went live.

SBI Chairman Yoshitaka Kitao said the project aims to accelerate “digital financial services that are fully integrated with traditional finance.” Startale CEO Sota Watanabe pointed to AI agent infrastructure and tokenized assets as core long-term use cases. Initial availability is limited to SBI VC Trade accounts. Broader on-chain circulation depends on tax treatment clarity and public blockchain migration, which Startale has said is technically ready. The likely destination is Strium L1, with potential multi-chain support including Soneium, a chain Startale co-developed with Sony.

Competition is forming. A consortium of Japanese megabanks – MUFG, Mizuho, and SMBC – is building a yen stablecoin through the Progmat platform, targeting interbank live deployment by March 2027. MUFG holds an Alpha Score of 57, reflecting a moderate positioning in the broader financial services sector.

Japan's stablecoin regulations are also crystallizing globally, with frameworks like the stablecoin regulations crystallize as Circle and Coinbase draw focus piece explores. For now, JPYSC stands as the first live test of whether a trust-bank wrapper can pull institutional yen flows onchain.