Japan’s First Trust-Bank-Backed Yen Stablecoin Targeted for Q2 2026 Launch

SBI Holdings and Startale Group have officially revealed the brand name and logo for JPYSC, positioning it as Japan’s first trust-bank-backed Japanese yen stablecoin under the country’s revised regulatory framework. The project is targeting a Q2 2026 launch, subject to final regulatory approvals.

Unlike earlier offshore yen-pegged tokens, JPYSC is structured within Japan’s domestic legal framework, aligning issuance directly with licensed financial institutions and trust-banking oversight.

Issuance Structure and Regulatory Alignment

JPYSC will be issued by SBI Shinsei Trust & Banking Co., Ltd. as a trust-based Type III Electronic Payment Instrument, a classification introduced under Japan’s updated stablecoin rules. Distribution will be handled by SBI VC Trade, while Startale Group oversees technical development.

The structure complies with Japan’s revised Payment Services Act (PSA), which mandates that stablecoins be:

• Fully backed by fiat currency
• Issued by licensed financial institutions
• Segregated within trust frameworks to protect holders

This regulatory architecture is designed to prevent the structural fragilities seen in algorithmic or lightly regulated stablecoin models elsewhere.

Strategic Use Cases and Institutional Focus

JPYSC is positioned less as a retail trading token and more as institutional financial infrastructure. The stated primary applications include:

• Corporate treasury management
• High-volume domestic settlements
• Cross-border payments denominated in yen

In effect, the project aims to offer a regulated yen-native alternative to dollar-dominated stablecoins such as USDT and USDC, which currently dominate global crypto liquidity.

Startale CEO Sota Watanabe indicated that JPYSC is also designed to support emerging “on-chain world” applications, including:

• AI-to-AI autonomous agent payments
• Tokenized real-world asset (RWA) distribution

This signals a broader ambition beyond payments toward programmable financial infrastructure.

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Broader Japanese Market Context

The launch aligns with what regulators have described as a “Digital Year” in Japan, as the Financial Services Agency(FSA) accelerates implementation of token-economy initiatives.

JPYSC enters a landscape where Japan’s three major banking groups are also conducting digital asset pilots:

• MUFG
• SMBC
• Mizuho

These programs include stablecoin experiments and tokenized deposit frameworks, reflecting a coordinated shift toward regulated digital money infrastructure rather than speculative crypto expansion.

Structural Implications

JPYSC represents a regulatory-first approach to stablecoins, embedding issuance inside Japan’s banking and trust architecture rather than relying on offshore entities.

If approved in Q2 2026, the stablecoin would mark a significant milestone for domestic yen-denominated digital settlement infrastructure, potentially reducing reliance on dollar-based tokens in regional markets.

Execution risk remains tied to regulatory clearance and institutional adoption. However, the structural alignment with Japan’s Payment Services Act positions JPYSC as one of the most compliance-centric stablecoin initiatives globally.

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