Tokyo financial giant to launch Yen-denominated stablecoin to compete with dollar-backed coins

A major Tokyo financial institution is preparing to launch a yen-denominated stablecoin in partnership with a Web3 infrastructure company, marking another significant step in Japan’s push to establish digital currency alternatives to dollar-backed coins. SBI Holdings and Startale Group announced plans to release the regulated digital asset in the second quarter of 2026, positioning themselves to compete in the rapidly expanding stablecoin market.

The collaboration combines SBI’s deep roots in Japan’s traditional financial sector with Startale’s expertise in blockchain technology and decentralized networks. This partnership signals growing confidence among established financial institutions that stablecoins represent a viable path forward for modernizing payments and settlement systems.

The Strategic Partnership and Vision

SBI Holdings and Startale have signed a memorandum of understanding to develop the yen stablecoin, which will operate under strict regulatory oversight. The digital currency will be designed from inception to facilitate international settlements and serve institutional users alongside individual participants.

Yoshitaka Kitao, Chairman and President of SBI Holdings, framed the initiative as part of a broader economic transformation. “The transition to a ‘token economy’ is now an irreversible societal trend,” he stated. The company envisions circulating the stablecoin both domestically and internationally to accelerate the integration of digital financial services with traditional banking infrastructure.

Our yen-denominated stablecoin is not just a means of everyday payment – it will play a central role in a fully on-chain world. In particular, we see enormous potential in enabling payments between AI agents and powering distributions for tokenized assets.

— Sota Watanabe, CEO of Startale

Sota Watanabe, Startale’s CEO, emphasized that the stablecoin extends beyond conventional payment use cases. The coin will support an emerging ecosystem where artificial intelligence systems execute transactions directly and where real-world assets become tokenized and tradeable on blockchain networks.

Complementary Currency Stack for Tokenized Trading

The yen stablecoin will function alongside Startale’s existing dollar-denominated stablecoin, Startale USD (USDSC). Together, these two digital assets will form what the companies describe as a “complementary currency stack” designed to support cross-border settlement and diverse transaction types.

Both coins will underpin a planned 24/7 tokenized stock exchange that SBI and Startale are jointly building. This platform aims to enable continuous trading of securities and other assets without the operational constraints of traditional markets.

The dollar stablecoin currently facilitates payments, rewards distribution, and liquidity provision on the Soneium network, which operates with technical backing from Sony. Adding a yen alternative will provide local-currency pricing and settlement options for Japanese market participants.

Japan’s Expanding Stablecoin Landscape

The SBI-Startale announcement arrives amid accelerating stablecoin development across Japan’s financial sector. The country’s Financial Services Agency has already approved JPYC, establishing it as Japan’s first officially recognized yen stablecoin. This regulatory milestone removed significant barriers for other institutions considering similar projects.

The FSA is also supporting a collaborative stablecoin initiative involving three of Japan’s largest banks: Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group. This joint venture represents unprecedented coordination among traditional banking giants on blockchain infrastructure.

According to sources within Japan’s cryptocurrency industry, several other major financial groups are actively preparing yen stablecoin launches beyond the publicly announced projects. This wave of activity suggests institutional confidence in stablecoins as essential infrastructure for the future financial system.

SBI’s Broader Stablecoin Strategy

The yen stablecoin announcement follows SBI’s August partnership with Ripple, a major blockchain payment platform. That collaboration aims to bring Ripple USD (RLUSD) to the Japanese market in 2026, giving SBI exposure to both yen and dollar-denominated stablecoin ecosystems.

This dual approach reflects SBI’s recognition that both local-currency and global-reserve-currency stablecoins serve distinct but complementary functions. The company is positioning itself as a comprehensive provider of digital settlement infrastructure rather than betting exclusively on a single approach.

SBI’s long-standing relationship with Ripple demonstrates how traditional financial institutions are deepening their engagement with blockchain-based payment systems. The company has been an early and consistent supporter of Ripple’s technology and business model.

Industry Context and Market Implications

The global stablecoin market has experienced exponential growth, with total market capitalization surpassing $150 billion as of 2024. Dollar-denominated stablecoins like USDC and USDT have dominated this space, but regulatory clarity around yen-backed alternatives is creating significant opportunities for Japan-based solutions. The International Monetary Fund and financial regulators worldwide increasingly recognize stablecoins as critical infrastructure for modernized payment systems.

Japan’s approach differs meaningfully from other jurisdictions pursuing stablecoin innovation. Rather than enabling cryptocurrency-native projects to operate in regulatory gray areas, the Financial Services Agency has established a clear licensing framework. This creates a competitive advantage for institutions that can combine traditional banking credibility with blockchain technology sophistication.

SBI Holdings occupies a unique position within this ecosystem. As a diversified financial services conglomerate with over $200 billion in assets under management, SBI brings institutional credibility that many blockchain startups cannot match. The company operates securities, banking, and insurance divisions alongside its cryptocurrency ventures, enabling integrated financial services that span traditional and digital domains.

Startale Group brings complementary strengths in blockchain infrastructure development and decentralized network design. The company’s experience deploying the Soneium network demonstrates technical capability in scaling blockchain systems for institutional adoption. This partnership combines SBI’s market access and regulatory relationships with Startale’s technological innovation.

Real-World Asset Integration and Future Applications

The yen stablecoin is designed to operate as a “global settlement currency” with particular emphasis on supporting the tokenized real-world assets (RWA) market. Real-world assets include physical items and financial instruments converted into digital form on blockchain networks, enabling fractional ownership and continuous trading.

This application represents a significant expansion of stablecoin utility beyond simple payments. As real-world asset tokenization accelerates, stablecoins provide the pricing and settlement layer necessary for these markets to function efficiently at scale. Financial analysts project the tokenized real-world assets market could reach $16 trillion by 2030, creating enormous demand for reliable stablecoin infrastructure.

The integration with AI agent payments represents another forward-looking application. As autonomous systems handle an increasing share of economic transactions, stablecoins denominated in local currencies will become essential infrastructure for these interactions. Startale’s emphasis on enabling direct payments between AI agents reflects recognition that blockchain-based economies will require native digital currencies.

The timing of Japan’s stablecoin expansion reflects broader global trends. Central banks and financial institutions worldwide are exploring digital currencies and stablecoins as responses to evolving payment technologies and international settlement needs. Japan’s approach emphasizes regulatory oversight and integration with existing financial infrastructure rather than operating in regulatory gray zones. This strategy positions Japanese stablecoins as trustworthy instruments for institutional adoption at a moment when regulatory fragmentation remains a significant challenge for stablecoin providers.

Conclusion and Strategic Outlook

The SBI-Startale stablecoin initiative represents more than a single product launch—it signals a fundamental shift in how Japan’s financial institutions approach digital currency innovation. By combining stringent regulatory compliance with blockchain infrastructure advancement, SBI and Startale are establishing a template for institutional stablecoin adoption that other financial centers may emulate.

The 2026 launch timeline provides sufficient runway for regulatory refinement and market preparation. The planned integration with the 24/7 tokenized stock exchange creates concrete use cases that extend beyond speculative trading, reinforcing institutional credibility. As more banks and financial institutions enter the stablecoin market, competition will intensify around both technical capabilities and regulatory relationships—areas where SBI maintains significant advantages.

For global financial markets, Japan’s stablecoin expansion matters because it reduces dependence on dollar-denominated alternatives for cross-border settlement and tokenized asset trading. This diversification strengthens the overall stablecoin ecosystem while advancing the broader transition toward blockchain-based financial infrastructure.