SBI Group has introduced its trust based stablecoin JPYSC in partnership with Singapore-based fintech company Startale Group.
SBI processed the first issuance of JPYSC on 24 June, with SBI Shinsei Trust Bank overseeing the issuance and SBI VC Trade, a licensed crypto exchange, handling distribution.
A trust bank manages reserve assets in SBI’s trust based structure, making JPYSC Japan’s first stablecoin of its kind, according to The Block.
Unlike fund transfer type stablecoins, JPYSC is not subject to the 1 million yen transaction and balance limits that apply to such instruments.
SBI expects JPYSC to attract retail and corporate users by offering lower transaction costs and supporting larger transactions.
The company said users could use the yen denominated stablecoin as a base asset for onchain foreign exchange markets, institutional lending, and settlements involving tokenised real world assets.
For now, JPYSC will only be available to SBI VC Trade account holders.
This restriction will remain in place while regulators clarify the tax and regulatory treatment of the stablecoin.
SBI VC Trade also plans to introduce a JPYSC lending service in the future.
SBI said JPYSC is Japan’s first trust bank backed yen stablecoin. Regulators under the Payment Services Act classify it as an electronic payment instrument and the first of its kind.
The company said the stablecoin aims to support yen based settlement and liquidity infrastructure for domestic and international onchain financial markets.
Japan has been moving towards greater adoption of regulated stablecoins in recent years.
In October, fintech company JPYC received approval for its yen backed stablecoin, becoming the country’s first legally recognised yen stablecoin.
Meanwhile, Japan’s three major banks, MUFG, SMBC, and Mizuho, are also developing a joint stablecoin project and plan to begin live commercial transactions in fiscal year 2026.
Featured image credit: Edited by Fintech News Hong Kong, based on image by topntp26 via Magnific