SBI and Startale launch JPYSC: the first trust-backed yen stablecoin changes the game
Financial group SBI Holdings, together with fintech company Startale Group, has officially launched JPYSC — Japan's first yen-denominated stablecoin issued under a trust model. Since June 24, the asset has been available to clients of the SBI VC Trade crypto platform, marking an important step in integrating digital currencies into the country's traditional financial infrastructure.
A New Paradigm for Corporate Settlements
The issuer of JPYSC is SBI Shinsei Trust Bank, while distribution has been handled by SBI VC Trade. The key difference from traditional stablecoins operating under a money transfer model is the absence of a 1 million yen limit on storage and transfers. This makes the instrument attractive not only for retail investors but also for large corporate transactions where flexibility and high throughput are essential.
In the initial phase, JPYSC will circulate exclusively within the SBI VC Trade ecosystem: users will be able to store and transfer the asset between platform accounts, but withdrawals to external wallets are temporarily blocked. The technical foundation for integration with public blockchains is already in place, and a full launch will occur after the regulatory framework is refined and approval from regulators is obtained.
Betting on Global Liquidity
The developers position JPYSC as a foundation for cheap and fast payments capable of competing with the traditional banking system. Special emphasis is placed on cross-border settlements: the stablecoin is planned to be exchanged for dollar equivalents and other digital assets, paving the way for creating a global liquidity network in yen. Additionally, SBI VC Trade has announced the launch of a lending service in JPYSC, allowing holders to earn yield.
Dollar Dominance and the Yen's Niche
The launch comes against the backdrop of impressive growth in the stablecoin market, whose capitalization has exceeded $309 billion. The vast majority — $186 billion for USDT and $74 billion for USDC — remains pegged to the US dollar, accounting for over 85% of the total supply. Stablecoins in other currencies occupy only a minor share: yen-denominated coins amount to about $44 million (0.15%), with JPYC dominating at a capitalization of just over $20 million. For comparison, euro stablecoins have already surpassed $725 million.
My comment: The launch of JPYSC is not just a local experiment but a strategic signal. Japan, with its conservative regulatory approach, is betting on the trust model, which allows it to bypass restrictions that constrain other jurisdictions. If SBI manages to scale this instrument for international settlements, we could witness the emergence of a new liquidity center in yen, challenging the dollar's hegemony in the stablecoin market. However, given the current microscopic share of yen coins, the path to a meaningful market share will be long and will require serious regulatory support.