Japan's SBI launches the first trust-based Japanese Yen stablecoin JPYSC, targeting three major application scenarios: cross-border payments, RWA, and AI economy.

Japanese financial giant SBI Holdings, in collaboration with Web3 infrastructure developer Startale Group, announced the launch of the JPYSC, a Japanese yen stablecoin supported by trust banks. This digitally-backed yen, backed by regulatory approval and legally protected asset segregation, is scheduled to go live in the second quarter of this year, aiming to reshape cross-border settlement and AI automation payments in the future.
(Background: Japan’s three major banks announce joint issuance of yen stablecoins: Financial Services Agency approves Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho for payment innovation PIP)
(Additional context: Understanding the future of the yen stablecoin “dual-track system”: JPYC’s DeFi faction and institutional joint stablecoin faction)

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• Trust architecture safeguards, a major breakthrough in regulatory compliance
• Clear role division, building a complete digital financial ecosystem
• Focusing on enterprise needs, opening applications for AI and asset tokenization

Recently, Japanese financial giant SBI Holdings announced a partnership with Web3 infrastructure developer Startale Group to launch a yen stablecoin called “JPYSC.” The key feature of this stablecoin is its “trust bank support” model, which not only complies with Japan’s latest digital asset regulations but is also expected to go live in the second quarter of this year, providing a safer digital financial tool for corporate institutions and cross-border payments.

Trust Architecture Safeguards, a Major Breakthrough in Regulatory Compliance

JPYSC is regarded as Japan’s first truly trust-supported yen stablecoin. Unlike some digital assets issued by tech companies in the past, the issuance and management of JPYSC are handled by SBI Shinsei Trust Bank.

Through the trust structure, users’ assets are legally fully segregated from the issuing institution’s own assets. This means that even in extreme market volatility or corporate risk scenarios, holders’ assets remain protected. This approach fully complies with Japan’s amended Fund Settlement Act’s strict requirements for “electronic payment methods,” paving the way for institutional investors to enter the Web3 space.

Clear Role Division, Building a Complete Digital Financial Ecosystem

Within the JPYSC ecosystem, SBI Group and Startale Group demonstrate close professional division of labor:

• SBI Shinsei Trust Bank: Responsible for regulatory compliance, asset custody, and stablecoin issuance.
• SBI VC Trade: The group’s cryptocurrency exchange, serving as the main sales and distribution channel.
• Startale Group: Providing core technical support to ensure the secure operation of the stablecoin on blockchain networks.

Additionally, JPYSC is designed with “interoperability” in mind. The official plans include enabling the stablecoin to operate across different blockchain networks and seamlessly connect with traditional banking clearing systems, breaking down barriers between digital assets and traditional finance.

Focusing on Enterprise Needs, Opening AI and Asset Tokenization Applications

According to Sota Watanabe, CEO of Startale, JPYSC’s ambitions extend beyond everyday payments. He emphasizes that this stablecoin will play a central role in the “Onchain World.” Specific use cases include:

2. Cross-border settlement: Providing faster, lower-cost cross-border fund transfers.
3. Asset tokenization (RWA): Supporting the distribution of yields and trading of tokenized assets.
4. AI economy: Serving as a payment medium for future “AI agents” engaged in automated trading.

This also indicates that JPYSC has the potential to challenge the current dominance of USD-pegged stablecoins like USDT and USDC, helping the yen regain initiative in the digital asset space.