In a significant move to bridge traditional finance with the digital asset world, Japan’s financial giant SBI Holdings has partnered with blockchain infrastructure firm Startale Group to develop a fully regulated, yen-denominated stablecoin. Announced on December 16, 2025, this collaborative effort aims to launch the stablecoin in the second quarter of 2026, targeting institutional use for global settlement and cross-border payments. The initiative represents a strategic bid to position Japan as a central player in the on-chain financial ecosystem.
A Partnership Combining Finance and Technology
The memorandum of understanding formalizes a clear division of expertise. Startale Group will take the lead on technology development, building the necessary smart contracts, security infrastructure, and developer APIs. SBI Holdings, leveraging its extensive financial network, will manage regulatory compliance and institutional distribution. The issuance and redemption of the stablecoin will be handled by Shinsei Trust & Banking, a licensed trust bank within the SBI group, ensuring a foundation of trust. Meanwhile, SBI VC Trade, a licensed crypto asset exchange, will facilitate the token’s circulation.
Built on a Foundation of Regulatory Clarity
This stablecoin is designed from the ground up to comply with Japan’s progressive regulatory framework. It will be issued as a “Type 3 Electronic Payment Instrument” under the revised Payment Services Act. This classification is crucial, as it subjects the token to strict licensing, collateralization, and redemption rules designed for consumer protection. Furthermore, it exempts the stablecoin from the conventional ¥1 million cap on domestic remittances, making it uniquely suited for large-scale corporate and cross-border transactions.
Carving a Nice in a Dollar-Dominated Market
The project enters a stablecoin market valued at hundreds of billions of dollars, which is currently dominated by U.S. dollar-pegged assets like USDC and USDT. The partners are targeting a slice of this market by focusing on specific institutional use cases where a digital yen provides distinct value. These include facilitating cross-border payments, settling corporate treasury operations, and powering the distribution of dividends for tokenized real-world assets (RWAs) like stocks and bonds. The stablecoin is also envisioned to work alongside Startale’s own dollar stablecoin (USDSC), creating a complementary currency stack for a future tokenized stock exchange.
Japan’s Intensifying Race for Digital Currency Leadership
This announcement accelerates competition within Japan’s financial sector. The country’s three megabanks—Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho—are already collaborating on a separate yen stablecoin pilot with support from the Financial Services Agency (FSA). SBI, a major financial conglomerate with a strong focus on digital assets and investments, is now entering this race with a distinct partner. SBI Holdings’ Chairman, Yoshitaka Kitao, framed the initiative as essential infrastructure for an irreversible “token economy”, aimed at accelerating the integration of digital and traditional finance.
The planned launch in Q2 2026 will be the first major test of this vision. Its success will depend not only on seamless technical execution but also on its ability to attract liquidity and gain adoption from institutional treasury teams accustomed to existing dollar-based systems. If successful, this regulated digital yen could become a cornerstone for Japan’s ambition to be at the forefront of the next generation of global finance.
