Japan’s SBI Set to Launch Yen‑Denominated Stablecoin by Q2 2026

SBI Holdings and Startale Group have signed an MOU to create a fully regulated yen‑denominated stablecoin. The project aims for a Q2 2026 launch, pending approval from Japan’s Financial Services Agency.

The stablecoin will follow Japan’s revised Payment Services Act, which allows banks and trust companies to issue fiat‑backed tokens. The partners plan to build a secure, compliant, and global‑ready digital yen.

Their goal is to support settlements, institutional use, and tokenized real‑world assets in a regulated environment.

Partnership and Regulatory Framework

SBI Holdings and Startale Group announced the partnership in Tokyo on December 15, 2025. The stablecoin will be issued and redeemed by Shinsei Trust & Banking Co., a subsidiary of SBI Holdings. SBI VC Trade Co., Ltd., the company’s licensed cryptocurrency exchange, will manage circulation.

Startale Group will lead technical development. This includes smart contract work, API integration, and security. The stablecoin will run on the Soneium blockchain network, which Startale co‑developed with Sony Group.

This structure aligns with Japan’s updated stablecoin rules under the Payment Services Act. The law was amended in 2023 to allow banks and trust companies to issue stablecoins backed by fiat reserves.

The project aims to meet all regulatory requirements, including compliance with FSA standards

Use Cases and Market Positioning

The new yen stablecoin is designed for global settlements and institutional applications. It will also support tokenized real‑world assets. It offers a programmable digital alternative to the yen.

It does not carry the ¥1 million domestic remittance limit. The token is meant to complement Japan’s digital yen pilot. It will support cross-border transactions and on-chain payments in a regulated environment.

The stablecoin aims to mitigate currency conversion risks in Asia’s substantial foreign exchange market. It also aims to diversify a market dominated by USD‑based stablecoins such as USDT and USDC. These two tokens hold more than 90% of the multi‑hundred‑billion‑dollar stablecoin market.

SBI Holdings Chairman and President Yoshitaka Kitao said tokenized assets and token‑based settlements are an “irreversible societal trend.” He described the stablecoin as core infrastructure for connecting digital and traditional finance.

Startale CEO Sota Watanabe stated that the partnership focuses on developing a compliant yen stablecoin for global markets. He highlighted SBI’s financial expertise and Startale’s blockchain capabilities.

Industry Context and Strategic Impact

SBI Holdings has a market capitalization of about ¥2.28 trillion as of December 2025. The company has been active in cryptocurrency since launching SBI VC Trade in 2018. It is a long‑term investor in Ripple Labs and supports XRP‑based remittances.

It has also explored multicurrency stablecoin strategies, including work on USDC and Ripple’s RLUSD. Startale, founded in 2019, builds Web3 infrastructure. It operates the Astar Network, a Polkadot parachain, and Soneium, an Ethereum Layer 2 launched in 2024.

Startale issues Startale USD (USDSC), an institutional USD stablecoin, and will pair it with the new yen token for FX settlements and liquidity. Japan’s digital finance push supports this development, with the FSA’s Payment Innovation Project and pilots from MUFG, SMBC, and Mizuho.

Analysts see the partnership as a move to diversify the stablecoin market. The announcement received positive reactions and strengthened SBI’s position in Japan’s race toward a tokenized economy.