Japanese financial giant SBI Holdings and Startale Group have announced JPYSC, a Japanese yen-pegged stablecoin focused on corporate and cross-border use cases. According to the announcement, JPYSC will be Japan’s first trust bank-backed stablecoin.
The issuance of the stablecoin will be managed by SBI Shinsei Trust Bank in accordance with local digital asset regulations. The group’s cryptocurrency exchange, SBI VC Trade, will serve as the primary distribution partner, while the technical development process will be handled by Startale.
The companies stated that a trust bank-backed yen stablecoin could strengthen the role of the Japanese yen in digital finance and offer a regulated alternative in a market currently dominated by US dollar-based stablecoins.
Early interest from institutional investors and companies has revealed demand for yen-based stablecoins in payment systems, treasury management, and cross-border settlement transactions.
JPYSC is designed to support interoperability between traditional financial infrastructure and different blockchain networks, it was stated. Startale CEO Sota Watanabe said that the yen-pegged stablecoin will play a central role not only for daily payments but also in new use cases such as tokenized asset distributions and payments between AI agents.
Subject to regulatory approval, JPYSC is scheduled to launch in the second quarter of this year. Japan recognized fiat-backed stablecoins as “Electronic Payment Instruments” in 2022 through an amendment to its Payment Services Act.
*This is not investment advice.