SBI Group Launches JPYSC Stablecoin for Institutional Use

SBI Group launches JPYSC, a regulated yen stablecoin designed for institutional payments, bypassing the 1 million yen transaction limit in Japan.

The project, backed by the financial giant SBI Group, aims to build infrastructure for large-scale institutional payments while reducing the local market’s reliance on dollar-backed tokens like USDT and USDC.

This launch comes just days after the final implementation of new regulations under Japan’s amended Payment Services Act, which cleared the path for broader adoption of regulated digital assets.

Banking Structure Provides Regulatory Edge

Unlike most stablecoins issued by payment or fintech firms, JPYSC utilizes a trust bank scheme through SBI Shinsei Trust Bank. This allows the asset to be classified as a “Type III” electronic payment instrument under the Japanese regulatory framework.

A key advantage of this classification is that the token is not subject to the 1 million yen per-transaction limit that applies to other categories of stablecoin issuers. Consequently, JPYSC is positioned as a specialized tool for major corporate and institutional settlements rather than a mass-market consumer payment method.

At this stage, distribution of the token is limited to users of the SBI VC Trade crypto exchange, which serves as the official distributor.

SBI Bets on the Future of Tokenized Finance

The project was developed in collaboration with Startale Group, a Singapore-based blockchain company founded by entrepreneur Sota Watanabe. According to the partners, JPYSC is intended to bridge the gap between traditional banking infrastructure and rapidly evolving on-chain markets.

Potential applications include cross-border transfers, institutional lending, settlement of tokenized assets, and payments within the Real World Asset (RWA) ecosystem. Developers also envision a future role for the token in automated settlements between AI agents and machines, where programmable payments offer clear advantages over traditional banking systems.

While the technical infrastructure for operating on a public blockchain is ready, the partners are waiting for further clarity regarding tax regimes and regulatory requirements before allowing the tokens to move freely outside the SBI ecosystem.

Major Banks Prepare a Response

The launch of JPYSC places SBI in a leading position within Japan’s emerging stablecoin market, but significant competition is on the horizon.

The country’s three largest banking groups—MUFG, Mizuho, and SMBC—are already collaborating on a joint initiative to build their own infrastructure.

That project was announced earlier this month, with the goal of launching the platform by the end of the fiscal year in March 2027.

This shift signals that the Japanese financial sector is entering a new phase of competition for control over future digital payment infrastructure. If the regulatory environment remains favorable, JPYSC could become the first major example of an institutional stablecoin used for real-world banking and corporate operations in one of the world’s largest economies.