BlackRock has signed an agreement with SBI Holdings and Startale Group to explore connecting tokenized money market funds with JPYSC, a stablecoin tied to the Japanese yen. The companies want to examine how blockchain technology could support financial services in Japan.
According to an October 27 announcement from SBI Holdings and Startale, BlackRock Financial Management and BlackRock Japan signed a memorandum of understanding to study the proposed connection. The agreement covers technical development, business opportunities, distribution options, and regulatory requirements.
However, the companies have not announced a launch date, identified a specific BlackRock fund for integration, or confirmed which blockchain network would be used.
Under the agreement, the three companies will examine how tokenized money market funds could connect with JPYSC through blockchain infrastructure. They will also explore the systems needed to support transactions, potential distribution channels, and the rules governing access to these services.
SBI Holdings brings experience in banking, securities, and digital assets, while Startale contributes blockchain development expertise. BlackRock will provide its experience in investment management through its US financial management business and Japanese subsidiary.
The companies also plan to consult financial institutions and other businesses in Japan and overseas to explore possible ways to operate the proposed services. No investment commitment, funding arrangement, or expected transaction volume has been disclosed.
BlackRock Japan President Yukiko Hashimoto said digital assets and tokenization could create new opportunities for Japanese investors. She added that BlackRock would contribute its global expertise to help develop financial markets and deliver value to investors.
SBI Holdings and Startale have already worked together on blockchain-based financial infrastructure. In February, the companies introduced Strium, a blockchain designed to support trading in tokenized equities, foreign exchange products, and other financial assets.
They have also been developing JPYSC through a trust-bank issuance structure. SBI Shinsei Trust Bank handles issuance, while SBI VC Trade provides distribution services through its regulated digital asset operations.
More recently, SBI and Startale announced plans to explore connections between JPYSC and Open USD as part of their wider work on stablecoin interoperability and digital payments.
SBI Holdings Chairman and President Yoshitaka Kitao said the global shift toward blockchain-based finance was becoming increasingly important, adding that SBI would continue developing financial products and services to support this transition.
Money market funds and stablecoins serve different purposes. Money market funds invest in short-term financial instruments, and tokenized fund shares represent an investment in those assets. Stablecoins such as JPYSC are designed to maintain a value linked to a currency, in this case the Japanese yen.
Japan already has a legal framework for qualifying fiat-linked stablecoins under amendments to its Payment Services Act. However, the companies still need to examine the regulatory requirements for distributing tokenized investment products and using stablecoins alongside them.
The announcement does not confirm that regulators have approved the proposed connection or that customers can already use JPYSC to purchase tokenized money market fund shares.
SBI has also been testing stablecoin payment systems, including cross-border QR payment projects with partners in South Korea. Those efforts are separate from the new BlackRock agreement and focus on payments and connections with existing merchant systems.
Startale CEO Sota Watanabe described the proposed connection between JPYSC and tokenized money market funds as an important step toward building blockchain-based financial infrastructure in Japan.
BlackRock has already expanded its tokenized finance business through BUIDL, a tokenized money market fund available across several blockchain networks. The company has also explored ways for eligible institutional crypto traders to use tokenized fund holdings as collateral.
However, the new agreement does not confirm whether BUIDL or another BlackRock-managed fund will be included in the Japanese project.
BlackRock Financial Management Managing Director Jonathan Steel said the collaboration would explore how digital infrastructure could connect traditional financial markets with emerging blockchain services. He added that tokenization could improve efficiency, expand access, and support the development of global capital markets.
The companies plan to involve additional financial institutions and businesses as discussions continue. For now, the technical design, participating funds, regulatory arrangements, and potential launch remain undecided.