**Japan's SBI and Startale Plan Regulated Yen Stablecoin in 2026 Under New Framework**
In a significant move towards the adoption of stablecoins in Japan, financial conglomerate SBI Holdings and Web3 infrastructure company Startale Group have signed a memorandum of understanding (MoU) to develop a fully regulated Japanese yen-denominated stablecoin. The project aims to tokenize assets and facilitate cross-border settlement by the second quarter of 2026.
According to the MoU, the yen stablecoin will be issued and redeemed by Shinsei Trust & Banking, a wholly-owned subsidiary of SBI Shinsei Bank. SBI VC Trade, the licensed crypto asset exchange service provider, will support the circulation of the stablecoin. The initiative is part of Japan's efforts to formalize stablecoin issuance under a clear regulatory framework.
The representative director, chairman and president of SBI Holdings, Yoshitaka Kitao, emphasized that issuing a yen-denominated stablecoin with Startale will serve as a foundation for the country's transition into a token economy. "By circulating it both domestically and globally, we aim to dramatically accelerate the movement toward providing digital financial services that are fully integrated with traditional finance," he said.
The launch of the yen stablecoin is subject to regulatory approvals and the completion of compliance frameworks. Japan's Financial Services Agency (FSA), the regulator responsible for banking, securities and exchange, and insurance sectors, recently launched its Payment Innovation Project, a regulatory sandbox for blockchain-based payments. The program's first official pilot backed yen-denominated stablecoins issued by three megabanks in the country.
The Startale and SBI effort intends to complement bank-led pilots by introducing a programmable, trust-bank-issued digital yen designed for cross-border settlement, tokenized equities, and real-world asset (RWA) flows. The initiative comes as Japan accelerates efforts to formalize stablecoin issuance under a clear regulatory framework.
SBI has emerged as a central player in Japan's evolving stablecoin landscape, pursuing a multicurrency strategy that spans both dollar and yen-denominated assets. In March, SBI VC Trade integrated Circle's USDC stablecoin into its exchange platform, making it one of the first platforms in Japan to offer crypto trading in USDC.
Recently, Ripple announced that it would bring its RLUSD stablecoin to Japan in early 2026 through a partnership with SBI VC Trade. The company said it would offer institutions and users a regulated stablecoin designed for enterprise use cases.
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