The global stablecoin market has reached a historic milestone with $301.3 billion in total market capitalization, driven primarily by enterprise and institutional adoption. According to Token Terminal, dollar-backed stablecoins dominate with 99.5% market share, reinforcing the U.S. dollar's continued role as the preferred settlement currency within digital asset markets. Ethereum maintains its leadership position with 57.5% market share, continuing to serve as a major settlement layer for payments, trading, decentralized finance, and tokenized assets. The growth coincides with rising activity across tokenized treasury products, digital payments, and institutional blockchain applications, as reported by Token Terminal.
On June 24, 2025, SBI Group and Startale Group officially launched JPYSC, Japan's first trust-based yen stablecoin, marking a significant milestone in the country's digital yen economy. According to AMBCrypto, SBI secured the regulatory structure to allow for creation via Shinsei Trust & Banking, positioning JPYSC as a trust-based stablecoin with the purpose of bridging traditional finance to blockchain infrastructure. The stablecoin is currently in early on-chain transaction volumes with controlled rollout prior to the anticipated Q2 2026 start. As reported by AMBCrypto, JPYSC is the first trust-based yen stablecoin recognized as an 'official' stablecoin, setting it apart from the broader market dominated by dollar-backed alternatives.
JPYSC aims at institutional use instead of focusing on creating an audience for retail users, as reported by AMBCrypto. The stablecoin can be used for large-volume settlement, treasury operations, and tokenized assets without restrictions found in previous similar products. It includes stronger compliance and protection for investors under its Type III electronic payment instrument, positioning it for real-time operational payment and settlement processes in the financial sector. According to AMBCrypto, JPYSC is designed to be unlimited in transaction size and account balances, making it suitable for large institutional transfers, tokenized asset settlements, and corporate transactions. This institutional focus aligns with the growing trend of enterprise stablecoins being positioned as tools for moving money between businesses, financial institutions, and digital asset platforms.
Despite regulatory approval, JPYSC faces significant competition from established dollar-pegged stablecoins in a market where 99.5% of all stablecoins are USD denominated. According to AMBCrypto reports, Tether [USDT] has over $186 billion in market capitalization and accounts for approximately 59% of the $301.3 billion global market share, while USD Coin [USDC] holds an additional $74 billion. The yen-denominated stablecoin market remains small compared to dollar-backed alternatives, making JPYSC's success dependent on creating advantages beyond regulatory compliance and regulatory approvals. As reported by Token Terminal, the competition is increasingly centered on regulatory approvals, banking relationships, settlement capabilities, and integration into real business operations.
The key challenge for JPYSC lies in demonstrating practical use cases that justify moving away from dollar-based payment systems in a market where 99.5% of all stablecoins are USD denominated. As reported by AMBCrypto, if financial institutions continue using the stablecoin across borders, this may indicate they view reduced foreign exchange risk as valuable enough to move their business off existing dollar-based rails. Early indicators of success will include transaction count and transaction volumes, with cross-border flows being crucial for long-term viability. According to AMBCrypto, planned use cases include yen-to-dollar liquidity pools for on-chain foreign exchange markets, lending and borrowing markets for institutional investors, settlement of tokenized stocks, bonds, real estate, and fund shares, business payments and merchant settlements, cross-border remittances with lower costs and faster settlement, and large OTC transactions and institutional trading. The growth in stablecoin supply has coincided with rising activity across tokenized treasury products, digital payments, and institutional blockchain applications, as reported by Token Terminal.
