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- JPYSC is Japan’s first trust bank-backed stablecoin, set for Q2 2026.
- Designed for interoperability between blockchain networks and traditional finance.
- A strategic move to challenge USD dominance in the stablecoin market.
Japan is making a bold move in the global stablecoin race with the introduction of JPYSC, a Japanese yen-backed stablecoin issued by SBI Shinsei Trust Bank in partnership with Startale Group. Scheduled for a Q2 2026 launch pending regulatory approval, JPYSC marks the first trust bank-backed stablecoin in the country, signaling a major step toward a regulated digital yen ecosystem.
A New Era for Japanese Stablecoins
Unlike the existing JPYC stablecoin, which operates as a prepaid payment instrument, JPYSC falls under a distinct regulatory category. Its issuance by a trust bank ensures direct yen reserves, robust governance, and full compliance with Japan’s Payment Services Act. Distribution will be managed through SBI VC Trade, the group’s licensed crypto exchange, while Startale Group, the Web3 firm behind the Astar Network, handles technical development.
Startale CEO Sota Watanabe emphasized that JPYSC is more than a payment tool: “Our yen-denominated stablecoin will play a central role in a fully onchain world,” he said, highlighting potential use cases such as payments between AI agents and tokenized asset distributions. The project is designed for interoperability across both blockchain networks and traditional finance, positioning JPYSC as a bridge between legacy banking and Web3.
Accelerating Japan’s Stablecoin Regulation
Japan’s stablecoin framework has been evolving steadily. The 2022 amendments to the Payment Services Act restricted stablecoin issuance to licensed banks, trust companies, and fund transfer providers. Major banks such as MUFG, SMBC, and Mizuho have already secured regulatory approval for joint stablecoin pilots. A March 2025 bill further allowed trust-backed stablecoin issuers to invest up to 50% of reserves in short-term government bonds. With the Finance Ministry declaring 2026 the “Digital Year,” regulators are preparing to reclassify crypto assets under the Financial Instruments and Exchange Act.
Also Read: Bybit Plans Gradual Exit From Japan Starting 2026 as Regulatory Pressure Builds
Japan’s Strategic Push in Asia
Japan is not alone in embracing digital currency innovation. Hong Kong is set to issue stablecoin licenses in March 2026, while South Korea accelerates won-backed stablecoin adoption. With over 90% of the $309 billion stablecoin market currently pegged to the U.S. dollar, JPYSC represents Japan’s strategic move to create regulated, non-USD digital rails for -cross-border payments and institutional settlements.
As Japan positions itself as a stablecoin leader in Asia, all eyes are now on the Q2 2026 launch window for JPYSC, a potential game-changer in bridging traditional finance and the emerging Web3 economy.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
