Japan’s SBI Holdings is partnering with blockchain firm Startale to develop a yen-pegged stablecoin that will be used for cross-border payments, enterprise settlements, and onchain financial services. Set to launch sometime in the second quarter of 2026, SBI and Startale’s new stablecoin is expected to serve both domestic and international markets, a press release published on December 16 said. SBI and Startale have signed a memorandum of understanding to collaborate on the development, issuance, and distribution of the token. The stablecoin will be issued as a Type 3 Electronic Payment Instrument regulated under Japan’s updated Payment Services Act. As such, the stablecoin will be compliant with the country’s licensing, collateralization, and redemption standards from the outset and will offer users broader transaction capabilities, even though it will be operating outside the usual cap of ¥1 million applied to many domestic payment tools. According to the press release, the unnamed stablecoin will be used primarily for institutional settlements and cross-border transactions, but would also serve as a foundational asset for smart contract automation, onchain remittances, and real-world asset tokenization, thereby allowing regulated yen liquidity to move freely across blockchain-based systems. At the same time, global markets will have access to a regulated digital yen that can function outside and independently from traditional banking rails. “Together, Startale and SBI Holdings aim to position Japan at the forefront of stablecoin innovation by promoting regulated stablecoins that bridge traditional finance and blockchain technology,” an excerpt from the press release said. SBI to handle issuance Startale will serve as the technical lead, overseeing the development of security infrastructure, smart contracts, developer tools, and APIs as part of the MoU. Meanwhile, SBI Holdings, using its financial subsidiaries, will manage compliance, issuance, and market distribution on the institutional end of the deal. Key responsibilities involved with the issuance of the stablecoin will mostly be handled by SBI subsidiaries. For instance, Shinsei Trust and Banking, which is a licensed trust bank under the SBI umbrella, will oversee issuance and redemption of the token, while SBI VC Trade will facilitate circulation as a licensed Crypto Asset Exchange Service Provider. Other financial institutions that are part of the SBI Group are also expected to support settlement and liquidity operations, which means the stablecoin will have an edge over other competitors in the yen stablecoin sector that are currently still in pilot phases. “By jointly issuing a yen-denominated stablecoin with the Startale Group to serve as the foundation of this infrastructure, and 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,” said Yoshitaka Kitao, Representative Director, Chairman, and President of SBI Holdings. Japan’s stablecoin push SBI and Startale’s initiative comes as Japan has rolled out a comprehensive legal framework for stablecoins, opening the door to broader participation in the stablecoin market that is largely dominated by US dollar-backed assets like Ripple’s RLUSD and Circle-issued USDC. On the regulatory front, Japan’s Financial Services Agency has been approving new licenses throughout this year, including SBI VC Trade, which became one of the first exchanges to offer regulated stablecoin services under the new regime. Japan saw its first yen-denominated stablecoin launch in October 2025 with JPYC, which is fully backed by fiat deposits held in licensed trust accounts. Simultaneously, a coalition of major banks, including MUFG, Mizuho, and SMBC, is jointly working on stablecoin pilots via the Progmat platform, aiming to bring commercial-grade financial products onto blockchain infrastructure. The post SBI, Startale to launch Yen stablecoin for global settlements in 2026 appeared first on Invezz
