SBI launches JPYSC, Japan’s first trust-bank yen stablecoin

SBI Group and Singapore-based Startale Group launched JPYSC on Wednesday and processed the first issuance the same day. SBI Shinsei Trust Bank will manage issuance and custody of the stablecoin's reserve assets, while SBI VC Trade will distribute the token to users.

The stablecoin uses a trust-based structure in which reserve assets are held by a trust bank rather than a fund-transfer arrangement. The token has been classified as an electronic payment instrument under Japan's Payment Services Act and is not subject to the 1 million yen transaction and balance limits that apply to fund-transfer-type stablecoins, the release noted.

Access to JPYSC will be limited initially to accounts on SBI VC Trade while regulators and tax authorities clarify the token's treatment. The exchange plans to introduce a JPYSC lending service in the near term. SBI expects the design to reduce transaction costs and to support block trades for larger transactions.

The company listed potential uses for JPYSC including serving as a yen-denominated base asset for onchain foreign-exchange markets, enabling institutional lending on blockchain, and acting as a settlement medium for tokenized real-world assets. In a press release the firm wrote, “JPYSC aims to establish a yen-denominated settlement and liquidity infrastructure for domestic and international onchain financial markets.”

The launch follows regulatory and industry developments in Japan. Last October a yen-backed stablecoin named JPYC received legal recognition as the country's first approved yen stablecoin. Japan's three megabanks — MUFG, SMBC and Mizuho — are developing a joint stablecoin and have said they plan to begin live commercial transactions with that token in fiscal 2026.

JPYSC is the first yen stablecoin backed by a Japanese trust bank. Wider availability and distribution will depend on guidance from regulators and tax authorities.