Key Highlights
- Startale Group and SBI Holdings agreed to develop a fully compliant yen stablecoin, structured as a trust-based Type 3 Electronic Payment Instrument.
- The project targets a Q2 2026 launch, with Shinsei Trust & Banking handling issuance/redemption and SBI VC Trade supporting circulation.
- The move comes as Japan expands FSA-backed stablecoin pilots with major banks.
Japan’s Startale Group and SBI Holdings have signed a memorandum of understanding (MoU) to jointly develop and launch a fully regulated, yen-denominated stablecoin designed for global use, with a targeted rollout in Q2 2026.
The companies said the stablecoin will be built under Japan’s financial regulations as a trust-based Type 3 Electronic Payment Instrument. Their approach is designed to support cross-border payments, enterprise settlement, and institutional adoption from day one.
Details of the yen stablecoin plan
As per the official release, Startale and SBI said the project’s framework is intended to be “programmable” and usable across jurisdictions, with compliance work planned not only for Japan but also for other markets where the token could circulate.
Under the roles outlined in the announcement, Startale will lead the technology buildout, including smart contracts, APIs, and security and compliance systems, while the SBI Group will lead regulatory coordination and distribution efforts aimed at institutions and investors.
The SBI Group’s Shinsei Trust & Banking is expected to manage issuance and redemption as a trust bank, while SBI VC Trade will support circulation as a licensed Electronic Payment Instruments Exchange Service Provider, according to the release.
“We are extremely excited to build world-leading use cases together with SBI Holdings, not only for Japan but for the global market. We will do everything we can to make Japan the center of the on-chain revolution,” said Sota Watanabe, CEO of Startale Group.
Japan’s stablecoin push
The MoU comes as Japan’s regulators and major financial institutions test stablecoin-based rails under supervised pilots. Last month, Japan’s Financial Services Agency (FSA) backed a proof-of-concept effort including MUFG, SMBC, and Mizuho to test whether stablecoins can make payments faster, cheaper, and more efficient across borders.
This shift matters because Japan has forced banks to play by clear rules, pushing them to build stablecoins at home rather than hiding behind offshore setups. If executed, the Startale–SBI project would add a new regulated yen-linked settlement option to Japan’s growing stablecoin market.
The move also comes as Tokyo-based JPC Inc. recently launched JPYC, Japan’s first yen-denominated stablecoin, which operates across leading blockchain networks like Avalanche, Ethereum, and Polygon. JPC Inc. has said it is targeting 10 trillion yen (about $65.4 billion) in circulation within three years, as the global stablecoin market surpasses $308 billion in total capitalization.
With the FSA simultaneously supporting bank-led stablecoin pilots, Japan’s stablecoin direction is increasingly centered on compliance-first issuance and distribution, an approach that could influence how yen-backed tokens are adopted for payments and settlement beyond domestic use.
Also read: Bank of Japan Plans ETF Sales Amid Rate Hike Speculation
