Japan Launches First Yen Stablecoin JPYSC

Japanese financial conglomerate SBI Holdings, together with startup Startale Group, has officially unveiled JPYSC — Japan's first yen stablecoin backed by a trust bank. SBI Shinsei Trust Bank serves as the issuer, while SBI VC Trade will handle distribution. The launch is scheduled for the second quarter of 2026.

How JPYSC works

JPYSC is classified as a Type III Electronic Payment Instrument under Japanese law. The trust bank issuer structure provides several important advantages: yen reserves are held directly in trust, governance is subject to strict standards, and the entire process complies with Japan's Payment Services Act.

Technical development of the platform is led by Startale Group, known for its participation in the Astar Network ecosystem. The company is responsible for the blockchain infrastructure and smart contracts that will power the stablecoin.

Who the new stablecoin is designed for

Unlike retail cryptocurrency products, JPYSC is primarily targeted at corporate and institutional clients. Key use cases include treasury operations, high-volume settlements, and cross-border payments.

• Treasury operations: companies can use JPYSC to optimize yen cash flow management
• International settlements: the stablecoin creates an alternative to dollar-based infrastructure for regional payments
• Institutional DeFi: JPYSC could become a base asset for regulated decentralized finance protocols

Asia's stablecoin regulation wave

The JPYSC launch fits into a broader trend of digital currency regulation across the Asia-Pacific region. Hong Kong plans to issue its first stablecoin issuer licenses as early as March 2026 under the Stablecoins Ordinance, which took effect in August 2025.

Singapore, South Korea, and Thailand are also actively developing regulatory frameworks for regulated digital currencies. This trend indicates that Asian countries are striving to build their own digital financial infrastructure that does not depend exclusively on dollar-denominated stablecoins like USDT and USDC.

A challenge to dollar dominance

JPYSC reflects Japan's deliberate strategy to build regulated non-dollar digital payment rails for institutional settlement and cross-border transactions. While the stablecoin market currently consists of over 98% dollar-denominated coins, the emergence of state-regulated alternatives in national currencies could gradually shift this balance.

For corporations and financial institutions seeking alternatives to dollar-based infrastructure, JPYSC offers a unique combination: the regulatory transparency of Japanese law, the reliability of a trust bank, and the flexibility of blockchain technology.

Outlook and challenges

Despite the project's promise, JPYSC will face a number of challenges. The main one is the need to build sufficient liquidity and a partner network to support real-world use cases. Additionally, competition from dollar stablecoins that already have well-developed infrastructure remains a significant factor.

Nevertheless, the backing of SBI Holdings — one of Japan's largest financial conglomerates — and a clear regulatory framework give JPYSC significant advantages from the start. The success of this project could serve as a catalyst for launching similar stablecoins in other Asian countries.