SBI and Startale Plan Regulated Yen Stablecoin for 2026

• The yen-based stablecoin will be trust-based, complying with Japan’s financial and remittance rules.
• Startale leads tech development, and SBI handles issuance, regulation, and adoption efforts.
• The project supports domestic and global payments with programmable onchain capabilities.

Japan’s SBI Holdings and Startale Group have signed an MOU to develop a regulated yen-denominated stablecoin. The agreement sets a planned launch in fiscal 2026, pending approvals. The project combines banking infrastructure, blockchain systems, and Japan’s stablecoin rules to support domestic and cross-border digital payments.

Framework for a Regulated Digital Yen

SBI Holdings and Startale will jointly design a yen-pegged stablecoin that complies with Japanese financial regulations. The partners plan to structure it as a trust-based Type 3 Electronic Payment Instrument. This structure avoids Japan’s ¥1 million cap on domestic remittances and account balances.

The stablecoin framework will support both domestic and international use cases. However, the design focuses on regulatory compliance across Japan and other jurisdictions. Startale will provide blockchain architecture while SBI will anchor the system within regulated financial infrastructure.

The partners aim to launch the project in fiscal year 2026. Earlier disclosures pointed to Q1 FY2026, while later updates target Q2 2026, subject to regulatory completion. These timelines depend on final compliance reviews and system readiness.

Roles, Issuance, and Circulation Structure

The agreement clearly splits duties between the two sides. Startale will handle the tech side, including smart contracts, APIs, security, and compliance tools. It will also help grow the ecosystem around programmable on-chain payments.

Companies under the SBI Group will take care of regulation and distribution. Shinsei Trust & Banking, which is fully owned by SBI Shinsei Bank, will manage issuing and redeeming the stablecoin, placing it within Japan’s trust banking system.

SBI VC Trade will help with circulation as a licensed crypto exchange, while other SBI Group companies will support adoption by institutions and businesses. This setup keeps stablecoin issuance under existing financial oversight.

SBI Holdings chairman and president Yoshitaka Kitao said the goal is to speed up digital financial services that work alongside traditional finance. He highlighted both local and global use, focusing more on execution than promotion.

Related: Japan Moves Toward Flat 20% Cryptocurrency Tax in New Plan

Japan’s Regulatory Context and Prior Collaborations

Japan has established a clear legal framework for fiat-backed stablecoins. The Financial Services Agency regulates issuance through trust banks and licensed intermediaries. The FSA recently launched its Payment Innovation Project, which is a sandbox for blockchain-based payment systems.

The sandbox’s first pilot supported yen-denominated stablecoins issued by MUFG, SMBC, and Mizuho Bank. The SBI and Startale project introduces a programmable model for settlement and tokenized assets. However, it complements rather than replaces bank-led pilots.

The stablecoin will target tokenized asset markets and global settlement. The design supports enterprise-grade settlement, onchain payments, and tokenized digital-market applications. Importantly, all use cases remain within regulated parameters.

SBI has also expanded stablecoin integrations beyond yen. In March, SBI VC Trade integrated Circle’s USDC after Japan softened stablecoin rules. Ripple also said it plans to launch its RLUSD stablecoin in Japan in early 2026 through SBI VC Trade.

Sota Watanabe, CEO of Startale Group, explained that the stablecoin will be used for automated payments and the distribution of tokenized assets. For now, the focus remains on building the right systems and meeting regulatory requirements as both sides work toward final approvals.

Meanwhile, SBI Holdings and Startale Group plan a regulated yen stablecoin under Japan’s stablecoin framework. The project defines clear issuance, technology, and circulation roles across regulated entities. The partners target a 2026 launch, subject to the completion of compliance and regulatory processes.