JPYSC has officially launched today, marking Japan's first trust bank-backed yen stablecoin, issued by SBI Shinsei Trust Bank and distributed exclusively through SBI VC Trade. As of June 24, the asset is available to clients of the SBI VC Trade crypto platform, with the issuer holding reserve assets, cash, and highly liquid yen-denominated instruments in a segregated trust account under trust law. The token is pegged 1:1 to the yen and classified as a Type 3 electronic payment instrument under Japan's Payment Services Act, making it the first product to reach market through this regulatory route. According to Nikkei, SBI Group plans to issue JPYSC as early as this week, with the launch making SBI the first Japanese financial institution to issue a trust-bank-structured yen stablecoin under the country's Payment Services Act framework.
The Payment Services Act classification as a Type 3 electronic payment instrument reflects this trust-bank structure, with Japan's revised framework creating a legal pathway specifically for trust bank stablecoins. Unlike stablecoins issued under the money transfer model, JPYSC is not subject to the 1 million yen limit on storage and transfers, making it suitable for corporate settlements and large transactions beyond retail payments. The no cap structure opens JPYSC to corporate settlement and large institutional trades, positioning it as a significant upgrade from previous domestic stablecoin offerings. Initially, JPYSC will be used exclusively within the SBI VC Trade infrastructure, with users able to store and transfer the stablecoin between platform accounts, though withdrawals to external wallets are not yet available. The trust-bank model provides token holders with a trust beneficiary right, a statutory claim on reserves held in a segregated account at SBI Shinsei Trust and Banking, legally ring-fenced from both the issuer's and the trust bank's own balance sheets under the Trust Act.
Singapore-based Startale Group, co-developer of JPYSC alongside SBI, provided the blockchain infrastructure and developer tooling. According to Startale CEO Sota Watanabe, the token serves as infrastructure for 'Japanese retail users, enterprises, and global financial institutions' to transact on-chain. The technical preparations for JPYSC's use on public blockchains are complete, with a full launch expected once the necessary legal and tax frameworks are established and regulatory approvals are obtained. This multi-chain approach positions JPYSC as foundational settlement infrastructure for Japan's on-chain financial market, with SBI anticipating the stablecoin will be used in cross-border transactions through exchanges for dollar-based stablecoins and other digital assets. Startale closed a $63 million Series A in late March, led by SBI ($50 million) and Sony ($13 million), with funds earmarked for JPYSC and a companion dollar stablecoin, USDSC. The deployment blockchain for JPYSC has not been publicly confirmed by SBI or Startale.
In October 2025, JPYC received approval as Japan's first legally recognized yen stablecoin, but under the fund-transfer framework with its 1 million yen cap intact. As reported by the launch announcement, Japan's three megabanks - MUFG, SMBC, and Mizuho - are jointly developing a stablecoin and announced plans in June 2026 to begin live commercial transactions during fiscal year 2026. JPYSC beats them to market with a structure the megabank project has not yet matched publicly. The megabank consortium established a joint stablecoin council on June 10 and targets live interbank transactions by March 31, 2027, using the Progmat platform with the same Type III trust-type EPI classification as JPYSC. The official Q2 2026 launch target expires June 30, making the Nikkei-reported this-week timeline the final window of that commitment. SBI VC Trade plans to launch a lending service in the stablecoin, allowing holders to earn returns on their assets as a near-term addition.
The launch of JPYSC comes amid rapid growth in the stablecoin segment, with a market capitalization exceeding $309 billion. However, yen-based coins make up about 0.15% of the supply with a total market capitalization of around $44 million, with JPYC dominating at just over $20 million. In comparison, euro-pegged stablecoins exceed $725 million in supply. Developers believe that JPYSC could provide a foundation for cheaper and faster payments compared to traditional financial infrastructure, with the 'goal of JPYSC is to create a yen-based settlement and liquidity infrastructure for domestic and international financial markets on the blockchain'. The tokenized RWA (Real World Assets) angle represents the more consequential long-term use case, serving as a natural settlement layer for Japan's growing pipeline of tokenized securities, real estate, and structured products. Japan passed the first comprehensive stablecoin legislation among G7 economies in 2022, with the June 13 completion of Japan's PSA ordinance enforcement resolving the last regulatory prerequisite for new EPI issuances under the framework.
