• SBI launched Japan’s first trust bank-backed stablecoin, JPYSC, today.
• JPYSC remains limited to SBI VC Trade users currently.
• Major Japanese banks advance competing stablecoin projects for 2026.
SBI Group has launched JPYSC, Japan’s first trust bank-backed stablecoin, as competition in the country’s regulated digital asset sector continues to grow. According to an announcement released on Wednesday, SBI completed the first issuance of JPYSC through SBI Shinsei Trust Bank. Meanwhile, SBI VC Trade, a licensed cryptocurrency exchange, will distribute the stablecoin to users.
The launch introduces a trust-based stablecoin structure that differs from existing models available in Japan. Unlike fund-transfer-type stablecoins, JPYSC is not subject to the one million yen transaction and balance limits imposed on similar products. SBI said the stablecoin could support both retail and institutional participants through lower transaction costs and larger settlement capabilities. Additionally, the company expects JPYSC to serve several functions across blockchain-based financial markets.
Potential applications include onchain foreign exchange trading, institutional lending, and settlement for tokenized real-world assets. Consequently, SBI sees the stablecoin as a tool that could expand the use of yen-denominated liquidity across blockchain networks.
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Initial Rollout Remains Limited
Despite the launch, JPYSC will initially be available only to SBI VC Trade account holders. According to SBI, the company will maintain that approach until the regulatory and tax treatment of the stablecoin becomes clearer. Besides providing trading access, SBI VC Trade plans to introduce a lending service for JPYSC in the near future. The service would allow users to lend their holdings while increasing the stablecoin’s utility within the ecosystem.
SBI also highlighted the product’s regulatory status. The company described JPYSC as Japan’s first trust bank-backed stablecoin and the first to be classified as an electronic payment instrument under the country’s Payment Services Act. According to SBI, the stablecoin aims to create a yen-denominated settlement and liquidity infrastructure for domestic and international blockchain markets.
Japan Advances Stablecoin Adoption
The launch arrives as Japan continues integrating regulated stablecoins into its financial system. Authorities have gradually introduced frameworks designed to support compliant blockchain-based payment solutions. Last October, regulators approved fintech company JPYC’s stablecoin, making it the country’s first legally recognized yen-backed stablecoin.
Moreover, major financial institutions are moving forward with their own initiatives. Japan’s three largest banking groups, MUFG, SMBC, and Mizuho, are currently developing a joint stablecoin project. Earlier this month, the banks announced plans to begin live commercial transactions during fiscal year 2026. Their project reflects increasing interest among traditional financial institutions in blockchain-powered settlement systems.
Growing Competition Among Financial Institutions
The arrival of JPYSC adds another participant to Japan’s emerging stablecoin market. As more regulated products enter the sector, competition is expected to increase among banks, fintech firms, and digital asset companies. With multiple projects now progressing toward commercial deployment, Japan continues positioning itself as one of the leading markets for regulated stablecoin development.
JPYSC’s launch expands Japan’s regulated stablecoin landscape while highlighting growing interest in blockchain-based payment infrastructure. Although access remains limited for now, the project represents another step in the country’s broader digital finance strategy.
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