- Startale and SBI signed an MOU to build a regulated yen stablecoin under Japan’s banking rules
- The yen stablecoin will be issued by a trust bank and distributed via SBI’s licensed exchange
- Japan aims to expand yen use in cross-border settlement as stablecoins pass $300B globally
Japanese blockchain company Startale Group and financial conglomerate SBI Holdings have agreed to jointly develop a regulated Japanese yen–yen-denominated stablecoin, formalizing the plan through a memorandum of understanding signed by both parties.
The project is scheduled for release in the second quarter of 2026, subject to regulatory clearance from Japan’s Financial Services Agency. The companies said the token will be issued under Japan’s stablecoin rules, which require full backing by fiat currency held within licensed financial institutions.
Startale, SBI Team Up to Launch Regulated Yen Stablecoin (Source: X)
Unlike consumer-focused payment tokens, the planned stablecoin is designed for institutional settlement, enterprise finance, and cross-border transactions. The partners described it as a digital settlement instrument rather than a retail payment tool, with an emphasis on regulated market infrastructure.
Banking-Led Issuance and Market Access
Under the agreed structure, issuance and redemption will be handled by Shinsei Trust & Banking, a subsidiary of SBI Shinsei Bank. The trust bank will hold the yen reserves that back the stablecoin, ensuring compliance with Japan’s requirement that stablecoins be issued through regulated entities.
Meanwhile, distribution and trading access will be managed by SBI VC Trade, the group’s licensed crypto exchange. The platform operates as a registered Crypto Asset Exchange Service Provider, allowing it to handle digital asset circulation under Japanese law.
On the other hand, Startale will be responsible for building the blockchain layer. This includes the smart contracts that govern issuance and redemption, as well as compliance-related controls intended to meet regulatory standards both in Japan and overseas. The companies said the system will emphasize traceability and operational transparency.
SBI Holdings Chairman and President Yoshitaka Kitao said the project reflects a broader shift already underway in financial markets. He noted that tokenized money is increasingly being developed within regulated banking frameworks rather than outside them, particularly as institutional demand grows.
A Yen-Based Alternative in a Dollar-Dominated Market
Stablecoins have become a core component of global digital finance. Total circulation now exceeds $300 billion, with most supply tied to U.S. dollar–pegged tokens used for trading, settlement, and liquidity management.
However, the new initiative aims to expand the role of the Japanese yen within that landscape. By offering a regulated yen-denominated token, the companies intend to support settlement flows that require currency diversification or alignment with Japanese counterparties.
The stablecoin is expected to be used in areas such as cross-border corporate payments, digital asset settlement, and enterprise treasury operations. According to the companies, it is not intended for speculative trading or everyday consumer spending.
Startale Chief Executive Officer Sota Watanabe emphasized that the token is being developed as financial infrastructure. He outlined applications that include tokenized asset distributions, automated settlement processes, and institutional payment systems that require programmable digital currency within regulatory limits.
Regulatory Context and Industry Positioning
Japan has taken a structured approach to stablecoin regulation. The Financial Services Agency permits issuance only through banks and trust companies, with strict requirements around reserve management and consumer protection.
Several major domestic banks, including Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group, have already tested yen-based digital currency projects through regulatory sandbox programs. In early 2025, startup JPYC launched a regulated yen-pegged stablecoin, providing an early example of compliant issuance under Japanese law.
Regardless, for SBI Holdings, the project fits into a broader digital asset strategy that includes crypto exchange operations, blockchain infrastructure, and stablecoin integrations with global partners. For Startale, it follows recent work on regulated digital currencies, including a dollar-backed stablecoin developed on Sony’s Soneium blockchain network.
Before launch, the yen stablecoin will undergo regulatory review, technical audits, and operational testing. Market participants are expected to focus on reserve transparency, system security, and institutional uptake as the project moves toward deployment.
As Japan continues to formalize its role in digital finance, the joint effort reflects a deliberate attempt to integrate national currency settlement into blockchain-based systems without stepping outside established financial oversight.
