SBI Launches Japan’s First Trust-Type Yen Stablecoin

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A consortium of five large companies, all affiliated with the giant SBI, has announced the launch of JPYSC, Japan’s first trust-based, yen-pegged stablecoin.

The companies behind it include SBI Holdings, SBI Shinsei Bank, SBI Shinsei Trust Bank, SBI VC Trade, and Singapore-based Web3 infrastructure firm Startale Group. According to SBI’s announcement, the new coin has been issued by SBI Shinsei Trust Bank and distributed by SBI VC Trade.

Multiple Use Cases

JPYSC represents Japan’s first “Type 3 Electronic Payment Instrument” under the Payment Services Act. Two key points separate this type from the previous ones. One, the issuer is a trust bank, and two, there’s no limit on the amount of money that can be sent or moved per transaction, nor a limit on the balance in the account. “Unlike existing money transfer type stablecoins, it will not be subject to the 1-million-yen limit for retention and transfers,” the press release points out.

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Compared to existing payment methods, the company noted, the transfer costs will be “significantly lower.” Moreover, because the system is capable of handling large transfers, the coin is suitable for various use cases, including corporations.

Speaking of which, institutional and retail use cases, once JPYSC transitions to public blockchains, include: on-chain foreign exchange, institutional lending, real-world asset (RWA) settlement, cross-border remittances, and commercial and retail payments.

“We anticipate its use by global companies through exchange with US dollar-denominated stablecoins and other instruments,” SBI said.

Only For Bank’s Customers…For Now

Initially, JPYSC is offered exclusively to SBI VC Trade account holders, meaning that it can’t be withdrawn or transferred to external wallets.

However, this is expected to change, the announcement suggests. Each company within the consortium has already completed the technical and practical preparations for the stablecoin to go live on the public blockchain.

“Once the relevant laws and tax practices are finalized, and subject to confirmation from supervisory authorities, we aim to transition to a system that enables circulation on the public blockchain both domestically and internationally as quickly as possible.”

Finally, SBI VC Trade plans to launch a JPYSC lending service “in the near future.” This move will give JPYSC holders “early access to opportunities to utilize JPYSC as a digital asset.” More information is coming, they concluded.

Meanwhile, earlier this month, SBI Holdings announced that it had made an additional investment in the funding round of Digital Asset Holdings, the developer of the blockchain platform Canton Network, through its subsidiary.

Additionally, SBI Holdings is buying Tokyo crypto exchange Bitbank for $289 million, making it a wholly owned subsidiary.