A First in Japan: Financial Giant Launches Legal Stablecoin

Japanese financial giant SBI Group has launched JPYSC, the country’s first trust bank-backed and yen-pegged stablecoin legally recognized as an electronic payment instrument.

Taking a revolutionary step in Japan’s financial ecosystem, SBI Group has officially launched the new stablecoin project JPYSC in collaboration with Singapore-based technology company Startale Group. This new digital asset holds the distinction of being the first trust bank-backed yen-pegged cryptocurrency classified as an “electronic payment instrument” under Japan’s Payment Services Act.

While SBI Shinsei Trust Bank will manage the project, the licensed cryptocurrency exchange SBI VC Trade will be responsible for the distribution processes. Unlike other digital assets operating through traditional fund transfer methods, JPYSC will not be subject to restrictions such as the 1 million yen transaction and balance limit. This opens a new door, particularly for large-scale institutional transactions.

The Stablecoin Era Begins in Japan

SBI Group anticipates that the new stablecoin will be an attractive option for both individual and institutional users thanks to its low transaction costs. JPYSC will be used as a primary payment instrument in areas such as on-chain foreign exchange markets, institutional loans, and the tokenization of real-world assets. Additionally, a lending service for this asset is planned to be launched soon via the SBI VC Trade platform.

Japan has been making intensive efforts in recent years to integrate regulated stablecoin assets into the mainstream financial system. This development, which resonates in the financial centers where the country’s flag flies, reinforces Japan’s leadership vision in digital finance. The fact that the country’s three largest banks—MUFG, SMBC, and Mizuho—aim to launch their own joint projects by 2026 indicates that competition and innovation in the region will increase.