SBI Holdings and Startale Labs have announced a collaboration to launch a regulated Japanese yen–backed stablecoin on the public Ethereum blockchain, targeting global financial settlement use cases. The stablecoin is expected to debut in the first half of 2026, according to the announcement.
The initiative marks a significant step in Japan’s institutional adoption of blockchain-based payments within a regulated framework.
Joint Venture and Issuance Structure
To support the launch, SBI and Startale have formed a Singapore-based joint venture called SBI Startale, which will be responsible for issuing and operating the stablecoin.
The token will be fully backed by yen deposits held in a trust account at a Japanese trust bank, ensuring a one-to-one peg with the Japanese yen. This structure is designed to meet Japan’s regulatory standards while providing transparency and asset backing suitable for institutional use.
Designed for Regulatory Compliance
The stablecoin is being developed in compliance with Japan’s Payment Services Act, which governs the issuance and management of digital payment instruments. SBI said the use of a public blockchain like Ethereum is intended to enhance accessibility and interoperability, while still adhering to strict domestic regulations.
By combining public-chain infrastructure with regulated issuance, the project aims to balance innovation with compliance.
Focus on Global Settlement
The primary objective of the yen stablecoin is to enable faster and lower-cost cross-border transactions. SBI and Startale said the stablecoin is designed for global settlement, serving a wide range of potential users, including fintech companies, institutional clients, and potentially central banks.
Using Ethereum allows the stablecoin to integrate with existing blockchain-based financial infrastructure, supporting real-time settlement and programmable payment flows.
Part of a Broader Institutional Trend in Japan
The launch aligns with a broader trend of institutional digital asset adoption in Japan, where major financial groups are increasingly exploring blockchain under clear regulatory oversight.
SBI’s move comes as other large Japanese institutions advance similar initiatives. MUFG, Japan’s largest bank, is developing its own stablecoin and tokenization platform, Progmat, aimed at connecting traditional finance with digital asset infrastructure.
Future Expansion Plans
Following the launch of the yen stablecoin, SBI Startale plans to expand into other Asian currency–backed stablecoins. The partners also indicated that a U.S. dollar–pegged stablecoin could be considered in the future.
With its regulated structure and public blockchain deployment, the yen stablecoin is positioned as a foundational step toward broader adoption of blockchain-based settlement in global financial markets.
