SBI Issues JPYSC, Japan’s First Trust Bank-Backed Yen Stablecoin

SBI Holdings has issued JPYSC, billed as Japan’s first trust bank-backed stablecoin denominated in yen. Reserve assets for the token are managed by SBI Shinsei Trust Bank, while issuance, circulation and distribution run through licensed crypto platform SBI VC Trade.

At launch, JPYSC is available only to customers with SBI VC Trade accounts. The company has tied any wider rollout to further clarity from financial regulators and tax authorities in Japan.

Under the arrangement, SBI Shinsei Trust Bank holds and administers the assets that back JPYSC within a trust structure. SBI VC Trade, which holds a cryptocurrency exchange license, will handle token minting, distribution and day-to-day circulation on its trading platform.

SBI Holdings intends the stablecoin to lower transaction costs for large-value fund transfers and to serve as a yen-denominated asset for on-chain foreign exchange trading, institutional lending and settlements of tokenized real-world assets.

The company also plans to offer lending services for JPYSC, allowing users to borrow or lend the token through its platforms.

Separately, three major Japanese banks-MUFG, Mizuho and Sumitomo Mitsui Banking Corporation-have announced plans to launch a stablecoin this year under a governance model in which the banks would act as joint settlors and a trust bank or similar institution would serve as trustee.

A trust bank-backed model places legal responsibility for managing reserves with a licensed trust institution that holds the assets supporting the token’s peg.

SBI has not provided a public timetable for broader retail availability. Any expansion beyond SBI VC Trade account holders will depend on regulatory and tax guidance from Japanese authorities.