Japan's SBI and Startale Launch First Trust-Based Yen Stablecoin JPYSC

Real-world asset (RWA) tokenization has emerged as a major theme in global financial innovation in recent years. As of mid-July 2026, total value locked (TVL) at RWA leader Ondo Finance had exceeded $3.5 billion. Japanese financial giant SBI Group has formed a strategic alliance with Ondo to advance the tokenization of Japanese stocks, linking traditional capital markets with the blockchain ecosystem in a key milestone for financial transformation.

SBI Group and Ondo Finance formally announced their strategic partnership on July 16, 2026. The companies will use JPYSC, a trust-based yen stablecoin issued by SBI Shinsei Trust & Banking in June 2026, to settle tokenized Japanese stocks and serve as collateral. The partnership expands the yen's practical on-chain settlement use cases while creating a new gateway between international capital markets and the global DeFi ecosystem.

As cryptocurrencies become more closely integrated with the real economy, fiat-backed stablecoins have emerged as a critical bridge between the two markets. Japanese financial giant SBI Group has been expanding into Web3, and its launch of a yen stablecoin lending service marks a significant step by traditional finance into digital assets. It also opens a new investment channel for investors seeking stable returns amid the crypto market’s sharp volatility.

Japanese cryptocurrency exchange SBI VC Trade said it would begin accepting lending applications for the yen stablecoin JPYSC on July 16, offering a 12-week term with a 3% annualized yield. The product, however, is not covered by deposit insurance or subject to statutory asset-segregation requirements. Investors must therefore bear credit risks including the possibility of the platform’s insolvency.

After TerraUSD collapsed in May 2022, Japan’s parliament completed legislative amendments that June. The revised Payment Services Act took effect on June 1, 2023, classifying fiat-backed stablecoins redeemable at face value as “electronic payment instruments.” Only banks, designated trust companies and funds-transfer service providers may issue them, while intermediaries must also register with the Financial Services Agency.

JPYC Inc. secured funds-transfer service provider registration No. 00099 from the Kanto Local Finance Bureau on August 18, 2025. On October 27, it formally issued Japan’s first compliant yen stablecoin through JPYC EX. JPYC is 100% backed by bank deposits and Japanese government bonds, is redeemable 1:1 and supports Ethereum, Polygon and Avalanche. It aims to reach ¥10 trillion in circulation within three years.

Japan’s amended Payment Services Act took effect in June 2023, bringing stablecoins under regulation as “electronic payment instruments.” JPYC Inc. began issuing JPYC, which is pegged one-to-one to the yen, on October 27, 2025. Sony Bank’s initiative links bank accounts with on-chain assets to lower barriers to money transfers and create a compliant gateway for digital spending on products such as games and music.

Sony Bank and JPYC signed a memorandum of understanding on strategic cooperation on March 2, 2026. The project will be led by BlockBloom, a wholly owned Web3 subsidiary of Sony Bank that began operations on October 1, 2025. The companies will test instant account debits that allow customers to buy JPYC on JPYC EX directly with bank deposits. They will also study automated multiple deposits and payments involving entertainment intellectual property. No launch date, fees or purchase limits were disclosed.