With Hong Kong issuing stablecoin licenses in March and 90% of the market still USD-pegged, the timing is interesting.
Japan just made a bold move in the global stablecoin race. SBI Holdings and Startale Group officially unveiled JPYSC, a Japanese yen stablecoin issued by SBI Shinsei Trust Bank, making it the first trust bank-backed stablecoin in the country.
The token is targeting a Q2 2026 launch, pending regulatory approval.
Unlike the existing JPYC stablecoin approved last October, which operates as a prepaid payment instrument, JPYSC sits in a completely different regulatory category. A trust bank issuing it means direct yen reserves, stronger governance, and full compliance under Japan’s Payment Services Act.
SBI VC Trade, the group’s licensed crypto exchange, will handle distribution. Startale Group, the Web3 firm behind the Astar Network with ties to Sony, is leading the technical build.
The partners made it clear this is not just a payments play.
Startale Group CEO Sota Watanabe said, “Our yen-denominated stablecoin is not just a means of everyday payment – it will play a central role in a fully onchain world.”
He added that the team sees “enormous potential in enabling payments between AI agents and powering distributions for tokenized assets, both of which will soon become reality.”
The project is also built for interoperability across blockchain networks and traditional financial infrastructure, positioning JPYSC as a bridge between legacy banking and Web3.
Japan has been building toward this moment for years. The 2022 amendments to the Payment Services Act defined stablecoins as “Electronic Payment Instruments” and restricted issuance to licensed banks, trust companies, and fund transfer providers.
The country’s three megabanks, MUFG, SMBC, and Mizuho, already received FSA approval for a joint stablecoin pilot. In March 2025, lawmakers passed a bill allowing trust stablecoin issuers to invest up to 50% of reserves in short-term government bonds.
Japan’s Finance Minister has called 2026 a “Digital Year,” and the FSA is preparing to reclassify crypto assets under the Financial Instruments and Exchange Act.
Japan is not moving alone. Hong Kong confirmed it will issue its first batch of stablecoin issuer licenses in March 2026 under its new Stablecoins Ordinance. South Korea is pushing won-denominated stablecoin adoption.
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With over 90% of the $309 billion stablecoin market currently pegged to the U.S. dollar, JPYSC represents a deliberate push by Japan to build regulated, non-USD digital rails for institutional settlement and cross-border payments.
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