SBI Holdings and Startale Group have introduced JPYSC, a yen stablecoin to be issued by SBI Shinsei Trust Bank. The project is being presented as Japan’s first yen stablecoin backed by a trust bank, with a target launch in Q2 2026, subject to regulatory approval.
Trust bank structure sets JPYSC apart
JPYSC sits in a different regulatory bucket from JPYC, the yen-linked token approved last October as a prepaid payment instrument. According to the source material, JPYSC will be issued by a trust bank, which means direct yen reserves, stronger governance, and compliance under Japan’s Payment Services Act.
Distribution will be handled by SBI VC Trade, the group’s licensed crypto exchange. The technical build is being led by Startale Group, the Web3 company behind Astar Network and a firm noted in the report for its ties to Sony.
Builders are aiming beyond simple payments
The companies are framing JPYSC as more than a retail payment token. Startale Group CEO Sota Watanabe said the yen-denominated stablecoin is not just for everyday payments and will hold a central place in a fully onchain world. He also said the team sees major potential in payments between AI agents and in distribution for tokenized assets, which he described as use cases approaching reality.
The project is also being designed for interoperability across blockchain networks and traditional financial infrastructure, placing it between legacy banking rails and Web3 systems.
Japan’s rulebook for stablecoins keeps advancing
Japan has been laying the legal groundwork for years. Amendments to the Payment Services Act in 2022 defined stablecoins as “Electronic Payment Instruments” and limited issuance to licensed banks, trust companies, and fund transfer providers.
The country’s three megabanks—MUFG, SMBC, and Mizuho—have already received approval from the FSA for a joint stablecoin pilot. In March 2025, lawmakers passed a bill allowing trust stablecoin issuers to invest up to 50% of reserves in short-term government bonds. The source also notes that Japan’s finance minister has called 2026 a “Digital Year,” while the FSA is preparing to reclassify crypto assets under the Financial Instruments and Exchange Act.
Regional competition is getting sharper
Japan is moving at the same time as other Asian jurisdictions. Hong Kong has confirmed it will issue its first batch of stablecoin issuer licenses in March 2026 under its new Stablecoins Ordinance, while South Korea is pushing adoption of won-denominated stablecoins.
More than 90% of the global $309 billion stablecoin market is still tied to the U.S. dollar. In that setting, JPYSC points to Japan’s attempt to establish regulated non-USD digital rails for institutional settlement and cross-border payments. The next date on the calendar is the planned Q2 2026 launch window.