Introduction
In a significant advancement towards regulated digital finance, SBI Holdings, in collaboration with Startale Group, is planning to launch a yen-pegged stablecoin by 2026. This payment solution aims to facilitate both domestic and international transactions.
Announcement Details
The announcement was made on December 16, when SBI Holdings and Startale revealed that they are entering a memorandum of understanding to collaboratively build this stablecoin, which they hope to introduce in the second quarter of 2026. Aimed particularly at enhancing cross-border payments, this digital currency will be classified as a Type 3 Electronic Payment Instrument according to Japan’s financial regulations. This classification allows the stablecoin to operate without the restrictions of a ¥1 million cap that typically applies to other digital payment systems in Japan.
Design and Utility
The design of the stablecoin emphasizes its utility for enterprise transactions, onchain activities, and seamless cross-border settlement, thus enabling the liquidity of yen to flow more freely across blockchain infrastructure. This development will provide global access to a regulated digital yen, functioning alongside conventional banking systems.
Leadership and Management
Yoshitaka Kitao, the Chairman and President of SBI Holdings, elaborated on the initiative, stating that the joint effort to issue a yen-denominated stablecoin lays the groundwork for a digital financial ecosystem fully integrated with traditional finance.
In terms of operational management, Startale will spearhead the technological development of the stablecoin, addressing aspects such as security protocols, developer resources, smart contracts, and API integration. Meanwhile, SBI Holdings will handle the stablecoin’s distribution and regulatory compliance through its subsidiaries. SBI VC Trade, recognized as a licensed cryptocurrency exchange, will facilitate the stablecoin’s circulation, while Shinsei Trust & Banking, another entity within the SBI group, will assume responsibility for its issuance and redemption processes.
Regulatory Landscape
Japan has recently tightened its regulations surrounding digital assets, establishing guidelines for stablecoins that necessitate complete backing by fiat currency and oversight by licensed financial institutions. This regulatory framework positions Japan as a cautious yet distinctly clear jurisdiction within the realm of regulated stablecoins. SBI’s active participation aligns with the nation’s regulatory direction and reflects the company’s significant investment in the digital asset sector, which spans from cryptocurrency trading to tokenized securities and blockchain settlements.
Future Applications
Looking ahead, the prospective yen stablecoin is anticipated to accommodate various future applications, such as tokenizing physical assets and enabling automated blockchain-based settlements, aligning with the growing interest among financial institutions in adopting blockchain technology. The launch, projected for Q2 2026, is contingent on obtaining regulatory approvals and completing system tests. In the lead-up to the release, the partners aim to solidify compliance measures, enhance technical integrations, and engage with institutional players for a seamless distribution strategy.
