SBI and Startale launch JPYSC: the first trust-backed yen stablecoin changes the game for Japan
Japan's financial ecosystem is taking a historic step: SBI Holdings and fintech startup Startale Group have introduced JPYSC, the country's first stablecoin denominated in Japanese yen and built on a trust model. This instrument has been available to SBI VC Trade platform clients since June 24.
Why the Trust Model Is a Breakthrough
JPYSC is issued by SBI Shinsei Trust Bank and distributed by SBI VC Trade. The key difference from traditional stablecoins operating on a money transfer model is the absence of a 1 million yen limit on storage and transactions. This makes the new asset suitable not only for retail users but also for large corporate settlements, paving the way for institutional adoption.
Ecosystem Launch with a Global Focus
In the initial phase, JPYSC will circulate exclusively within SBI VC Trade's infrastructure. Users can store and transfer the stablecoin between platform accounts, but withdrawals to external wallets are currently blocked. However, technical preparation for integration with public blockchains is already complete. A full launch will occur after clear legislative and tax regulations are established and regulatory approval is obtained.
Developers see JPYSC as a foundation for cheaper and faster payments compared to the traditional financial system. Special emphasis is placed on cross-border settlements through conversion into dollar stablecoins and other digital assets. As noted in the press release, the project's goal is to create a yen-denominated settlement and liquidity infrastructure for domestic and international markets on the blockchain.
Yield and Market
SBI VC Trade has also announced the launch of a stablecoin lending service, allowing holders to earn yield on their assets. This is an important step for attracting both retail and institutional investors.
Context: Dollar Dominance and the Yen Niche
The stablecoin market continues its rapid growth, exceeding $309 billion in market capitalization. Dollar giants — USDT from Tether ($186 billion) and USDC from Circle ($74 billion) — control over 85% of the supply. Against this backdrop, stablecoins in other currencies appear modest. Yen-pegged assets account for only ~0.15% of the market, with a total capitalization of about $44 million, where JPYC dominates (~$20 million). For comparison, euro stablecoins have already surpassed $725 million.
My analysis: The launch of JPYSC signals the maturity of Japan's crypto market. The trust model removes key restrictions for corporate clients, and integration with international settlements could catalyze growth in the share of yen stablecoins. However, success will depend on the speed of regulation and business readiness to adopt blockchain infrastructure. For now, this is just a first step, but it sets the right direction.