SBI Holdings and Startale Group have partnered to launch JPYSC, a trust bank-backed stablecoin in Q2. The rollout follows growing institutional demand, according to a joint statement released by the two entities.
Japan’s stablecoin environment has heated up amid rapid stablecoin development and rollout. Recent reforms in the Asian country are slowly positioning Japan as a test hub for yen-based digital currencies, tapping uncharted territory in institutional and cross-border payment solutions for high-volume transactions and tokenized asset settlement.
Startale Group and SBI Holdings partner to roll out yen-pegged stablecoin JPYSC
Startale Group and SBI Holdings announced a strategic partnership on February 27 to unveil JPYSC, a trust-based Type III Electronic Payment Instrument stablecoin issued by Shinsei Trust & Banking under Japan’s regulatory framework.
According to the announcement, the stablecoin will enable interoperability between traditional financial systems and decentralized finance ecosystems.
The announcement also stated that the stablecoin’s development was prompted by rising demand from leading financial institutions and corporate giants for what the pioneering partners deem “a globally trusted digital yen.”
During the finance conference “MoneyX 2026” based in Tokyo, SBI Chairman Yoshitaka Kitao commented on JPYSC’s rollout, saying it is part of the Group’s business strategy, which revolves around stablecoins and on-chain finance.
The official cited the GENIUS Act, saying the improved regulatory frameworks in the U.S. will eliminate legal risks on stablecoins.
Kitao highlighted that the crypto industry is also growing in Japan, and its expansion has paved the way for further regulatory developments. The growth is reflected in the number of Japan-based crypto accounts, which have now increased to 14 million, and in the total deposit balance, which exceeds 5 trillion yen (more than $30 billion).
According to Kitao, the growth establishes crypto as an asset class, and the increasing demand is driving institutional adoption. The stablecoin’s official launch is subject to completion in Q2 of 2026, upon receipt of the necessary regulatory approvals.
Startale Group will lead the project’s technical development while SBI VC Trade will act as the stablecoin’s primary distribution partner.
Japan’s stablecoin ecosystem grows as global adoption surges
Japan’s stablecoin environment has rapidly evolved with time. In October 2025, the country’s financial watchdog gave JPYC’s stablecoin the green light as the country’s first legally recognized yen-backed stablecoin. The stablecoin’s development company, JPYC Inc., announced that JPYC went live on multiple chains, including Ethereum, Avalanche, and Polygon.
Additionally, Japan has begun testing USDC stablecoin payments in retail settings as financial technology companies promote yen-pegged stablecoin payments to bypass merchant fees.
A previous Cryptopolitan report dated February 9 highlighted that the country’s first yen-pegged stablecoin attracted several new partnerships. The report noted that major enterprises and banking institutions have shown interest in advancing real-world crypto-powered payment solutions using yen- and dollar-backed stablecoins.
The publication also reported that the JPYC issuer recently partnered with Line to incorporate the yen pair into the Line-based wallet for everyday payments, as a way to expand customer reach. JPYC also partnered with Asteria Corporation, a software company, on February 4 to integrate the stablecoin into accounting and payment software systems, enabling enterprises to adopt crypto payment solutions without changing their internal systems.
The stablecoin wave has also reached the Japanese banking sector, as Japan’s top three banks announced collaborations to jointly issue yen- and dollar-pegged stablecoins. Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho banks aim to improve corporate financial transactions by facilitating faster, standardized transactions between their business clients.
Elsewhere in Europe, the Deutsche Bundesbank, the central bank of the Federal Republic of Germany, recently announced its renewed commitment to fostering the widespread adoption of a digital euro in the jurisdiction. However, the bank’s officials raised concerns over the dominance of the U.S. dollar in the stablecoin sector.
According to CoinMarketCap, Tether’s USDT is the largest stablecoin, with a market capitalization of $183 billion and a 24-hour trading volume of $74 billion.
Data from the Bank for International Settlements shows that strong legislative backing from U.S. President Donald Trump and his administration has increased the adoption of dollar-pegged stablecoins, which now account for over 99% of global stablecoin supply.
Source: https://www.cryptopolitan.com/japans-yen-pegged-stablecoins-gain/
