SBI Holdings and Startale launch JPYSC: the first trust-backed yen stablecoin in the Japanese market
Financial giant SBI Holdings, together with fintech startup Startale Group, has launched JPYSC, Japan's first stablecoin denominated in the national currency and built on 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 assets into the country's traditional financial infrastructure.
JPYSC is issued by SBI Shinsei Trust Bank and distributed by SBI VC Trade. The key advantage of this instrument is the absence of a 1 million yen limit on storage and transfers, which is typical for stablecoins issued under the money transfer model. This opens the door not only for retail users but also for corporate settlements and large transactions, making JPYSC a versatile tool.
SBI Ecosystem as the First Platform
At the initial stage, JPYSC will circulate exclusively within the SBI VC Trade infrastructure. Users will be able to store and transfer the stablecoin between platform accounts, but withdrawals to external wallets are currently blocked. The company confirmed that technical preparation for operation on public blockchains is complete, but a full launch is postponed until clear legislative and tax regulations are established, as well as regulatory approval is obtained.
International Settlements as a Strategic Goal
The 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 exchange for dollar stablecoins and other digital assets. "JPYSC's goal is to create a settlement and liquidity infrastructure in yen for domestic and international financial markets on the blockchain," the company stated. Additionally, SBI VC Trade plans to launch a stablecoin lending service, allowing holders to earn yield on their assets.
Dollar Dominance and Prospects for Yen-Coins
The launch of JPYSC comes amid rapid growth in the stablecoin market, whose capitalization exceeds $309 billion. However, the majority still consists of dollar-denominated assets: USDT from Tether ($186 billion) and USDC from Circle ($74 billion) account for over 85% of the total supply. Stablecoins in other currencies remain in the shadows: yen-based coins make up only ~0.15% of the market with a total capitalization of about $44 million, where JPYC dominates with a figure slightly above $20 million. For comparison, the supply of euro-pegged stablecoins exceeds $725 million.
My expert commentary: The launch of JPYSC is not just a local experiment but a strategic move by Japan to strengthen its currency in the digital space. Given that the stablecoin market is 85% dollar-based, the emergence of a reliable instrument in yen could create competition and stimulate diversification of global settlements. However, success will depend on the speed of regulatory decisions and the willingness of corporations to transition to new rails.