Japan is taking another big step into digital finance. SBI Holdings and Startale are working together to launch a yen-backed stablecoin that could be used both inside Japan and around the world. If everything goes as planned, the stablecoin will launch in the second quarter of 2026.
The two companies confirmed the plan in a recent announcement, saying they’ve signed an agreement to jointly build and issue the token under Japan’s strict financial rules. The stablecoin will be fully backed by the yen and issued through SBI’s trust banking business, making it a regulated and compliant digital currency.
This isn’t just about local payments. The goal is to make cross-border payments faster and easier, support tokenized assets, and allow secure onchain settlements tied directly to the Japanese yen. In simple terms, it’s about letting yen move smoothly through blockchain systems without losing the safety of traditional finance.
One key advantage is how the stablecoin will be classified. It will fall under Japan’s “Type 3 Electronic Payment Instrument” category. That means it won’t be limited by the usual ¥1 million cap that applies to many digital payment tools in Japan. This makes it more suitable for business use and international transfers.
SBI says the stablecoin is meant to work alongside regular banking systems, not replace them. The idea is to connect blockchain technology with traditional finance in a practical and regulated way. SBI’s leadership says this could speed up the delivery of modern digital financial services that still follow the rules.
Under the agreement, Startale will handle the technical side, including security, smart contracts, developer tools, and APIs. SBI will take care of issuance, distribution, and regulatory compliance through its financial companies. SBI VC Trade will help with circulation, while Shinsei Trust & Banking is expected to manage issuance and redemption.
This project fits neatly into Japan’s broader strategy on digital assets. Over the past few years, Japan has built clear and strict rules for stablecoins, requiring full fiat backing and oversight by licensed banks or trust firms. That approach has made Japan cautious, but also one of the clearest places in the world for regulated digital finance.
Looking ahead, the companies say the digital yen could support many uses, from tokenized real-world assets to automated blockchain settlements and even payments between software systems. For now, the focus is on final approvals, system testing, and working with institutions ahead of the planned 2026 launch.
If successful, this stablecoin could become a major bridge between Japan’s yen and the growing world of blockchain-based finance.
