SBI Holdings and Startale Group team up to develop a fully regulated yen-denominated stablecoin for global settlement. The initiative aims to bridge traditional finance and blockchain-based payments, positioning Japan to challenge dollar dominance in the $300 billion stablecoin market.
Building a Regulated Digital Yen
The two companies have signed a memorandum of understanding to co-develop a compliant, tokenized yen designed for enterprise use and cross-border settlements.
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"The transition to a 'Token Economy' where all real-world assets are tokenized and tokens permeate society as a means of settlement - is now an irreversible societal trend,” said Yoshitaka Kitao, Representative Director, Chairman & President of SBI Holdings.
“By jointly issuing a Yen-denominated stablecoin with the Startale Group to serve as the foundation of this infrastructure, and by circulating it both domestically and globally, we aim to dramatically accelerate the movement toward providing digital financial services that are fully integrated with traditional finance.”
The project is framed under Japan’s Financial Services Agency (FSA) regime for stablecoins and aims to go live in the second quarter of 2026, pending regulatory approval.
Technology Meets Traditional Banking
Using Startale’s blockchain and smart contract expertise alongside SBI’s financial infrastructure, the yen stablecoin will reportedly function as a Type 3 Electronic Payment Instrument, free from the domestic ¥1 million transfer limit. This structure allows for scalable settlement flows across both retail and institutional networks.
Startale will lead the token’s technical development, focusing on smart contract architecture, APIs, and compliance mechanisms. Shinsei Trust & Banking, part of the SBI Group, will handle issuance and redemption, while SBI VC Trade manages circulation under its crypto asset exchange license.
Japan’s Digital Currency Push
The initiative complements Japan’s broader push toward compliant stablecoins and tokenized assets, part of the FSA’s Payment Innovation Project. Authorities have encouraged regulated experimentation, backing pilots by major banks such as Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho.
Through this new collaboration, SBI and Startale seek to create interoperability between blockchain-native assets and traditional finance, creating a base layer for on-chain settlement, cross-border payments, and real-world asset (RWA) tokenization.
Startale’s yen token will sit alongside its existing dollar stablecoin, USDSC, providing a dual-currency bridge for digital settlements. Together, they will support multi-currency liquidity across Startale’s networks, including the Soneium blockchain and the Startale App.
