SBI Holdings and the Startale Group have signed a memorandum of understanding to jointly develop and launch a regulated Japanese yen-denominated stablecoin. This initiative aims to provide a compliant and institutionally-focused alternative to the predominantly dollar-denominated digital currency market in global trade and settlement. The stablecoin is planned for launch in the second quarter of 2026 under Japan’s progressive new regulatory framework.
A Strategy for Digital Finance Integration
The partnership combines the deep financial infrastructure and regulatory experience of SBI Holdings with the cutting-edge blockchain technology of the Startale Group, which operates Japan’s largest public blockchain, the Astar Network.
- Technology Development: Startale will lead the technical build, including smart contract architecture, security systems, and API design.
- Compliance and Distribution: SBI will manage regulatory compliance and drive institutional adoption and distribution channels.
- Issuance and Circulation: The stablecoin is designed as a trust-based Type 3 Electronic Payment Instrument. Shinsei Trust & Banking, a subsidiary of SBI Shinsei Bank, will manage the issuance and redemption operations as the trust bank. SBI VC Trade, a licensed Crypto Asset Exchange Service Provider, will handle the digital currency’s circulation.
SBI Holdings Chairman and President Yoshitaka Kitao views the yen stablecoin as a pivotal step to accelerate the integration of digital financial services with traditional finance, calling the shift toward a token economy an “irreversible trend.”
Targeting the $300 Billion Stablecoin Market
The project is designed to carve out a significant space for the yen in the stablecoin market, which currently exceeds $300 billion in circulation and facilitates trillions in annual transactions, overwhelmingly dominated by U.S. dollar assets.
Startale CEO Sota Watanabe highlighted the stablecoin’s utility beyond everyday payments, positioning it as foundational infrastructure for:
- Institutional Settlement
- Foreign Exchange
- Tokenized Real-World Asset (RWA) Flows
- AI Agent Transactions
This regulated yen stablecoin will also complement the recently launched Startale USD, an institutional-grade dollar-pegged token used as the default currency for the Soneium blockchain (co-developed with Sony Block Solutions Labs) and the Startale App. This dual-currency approach is intended to create an interoperable framework connecting regulated yen stablecoins with the broader global blockchain ecosystem.
Leveraging Japan’s Regulatory Momentum
The initiative is built on the foundation of Japan’s recently established regulatory clarity for stablecoins and follows the Financial Services Agency’s (FSA) creation of the Payment Innovation Project, a regulatory sandbox for blockchain payments. The FSA recently approved a pilot by Japan’s three largest banks—Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho—as the sandbox’s first test case.
By leveraging Japan’s supportive regulatory environment, the partners aim to position the country at the forefront of global blockchain adoption. The collaboration extends previous efforts between the two firms, which included work on tokenized equities and plans for a 24/7 digital asset exchange.
