Japan's stablecoin landscape reaches a milestone: SBI Holdings and Startale Group announced the launch of JPYSC, the nation's first trust-bank-type (Type III) yen-pegged stablecoin, slated for Q2 2026. Issued by SBI Shinsei Trust Bank, the coin awaits final regulatory approval but is already seen as a breakthrough for Asia's crypto regulation.
Structure & Regulatory Framework
JPYSC is backed 1:1 by the Japanese yen, with reserves primarily held in domestic bank deposits and Japanese Government Bonds (JGBs) — roughly 80% in JGBs for yield while staying compliant. Under Japan's Payment Services Act (effective June 2023), regulated yen stablecoins can only be issued by three license categories: banks, registered funds transfer service providers (non-bank fintechs), and trust banks/companies. Previously, JPYC Inc. launched JPYC under Type II (funds-transfer type) in October 2025. JPYSC now debuts as the first Type III (trust-type) stablecoin, issued by SBI Shinsei Trust Bank, marking a shift from funds-transfer to trust-backed models.
Can JPYSC Rival USDT?
USDT (Tether) commands a market cap of roughly $183+ billion, while JPYSC remains pre-launch. The material notes that JPYSC is unlikely to challenge USDT globally in the near to medium term, but it can carve out a niche in yen-denominated payments, cross-border remittances (via partnerships like Circle's StableFX), e-commerce, tourism, and TradFi bridging. Key differences: JPYSC is yen-pegged and issued by a regulated Japanese trust bank under strict domestic oversight; USDT is dollar-pegged and operates offshore. A fair competition does not yet exist.
Japan's Conservative Approach vs. Global Peers
Compared to the U.S. GENIUS Act (2025) or the EU's MiCA, Japan's model is more conservative, prioritizing bank/trust issuance and full fiat segregation over broader innovation. This reduces risks from offshore or algorithmic stablecoins but limits speed and flexibility for non-institutional players. Overall, Japan positions itself as a leader in regulated, bank-friendly stablecoins via projects like JPYSC, ideal for bridging traditional finance and blockchain in Asia.