SBI and Startale launch JPYSC: the first trust-based yen stablecoin changes the game for Japan
Financial giant SBI Holdings and fintech company Startale Group have officially unveiled 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 a significant step in integrating digital currencies into the country's traditional financial infrastructure.
JPYSC is issued by SBI Shinsei Trust Bank, with distribution handled by SBI VC Trade. The key advantage of the trust model is the absence of the 1 million yen limit on storage and transfers, which is typical for stablecoins issued via money transfers. This makes JPYSC not only a tool for retail users but also a viable solution for corporate settlements and large transactions.
Ecosystem Launch and Prospects for Public Blockchain Entry
In the initial phase, JPYSC will circulate exclusively within the SBI VC Trade infrastructure. Users can store and transfer the stablecoin between platform accounts, but withdrawals to external wallets are currently blocked. However, technical preparations for circulation on public blockchains have already been completed. A full launch is expected after legislative and tax issues are resolved and regulatory approvals are obtained.
Focus on Cross-Border Payments and Yield
The developers position JPYSC as a foundation for cheaper and faster payments compared to the traditional financial system. Special emphasis is placed on international settlements: the stablecoin is planned to be used for exchange into dollar-pegged stablecoins and other digital assets, paving the way for efficient cross-currency operations. "JPYSC aims to create a yen-denominated settlement and liquidity infrastructure for domestic and international financial markets on the blockchain," the official statement emphasizes. Additionally, SBI VC Trade has announced the launch of a stablecoin lending service, allowing holders to earn yield on their assets.
Market Context: Dollar Dominance and a Niche for the Yen
The launch of JPYSC comes amid rapid growth in the stablecoin market, whose total capitalization exceeds $309 billion. The lion's share belongs to 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 on the periphery. Yen-based coins make up only ~0.15% of the market, with a total capitalization of around $44 million, where JPYC dominates with just over $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 that could redefine the yen's role in the global crypto economy. The trust model bypasses key regulatory barriers, making the stablecoin attractive to institutional players. However, the project's success will depend on how quickly SBI can integrate JPYSC into international settlement networks and create a liquid market beyond its own ecosystem. If successful, we will witness not just a new token but the beginning of an alternative, non-dollar liquidity pole in the world of stablecoins.