Japan Unveils First Trust Bank-Backed Yen Stablecoin

Japan has taken a major step forward in the development of its stablecoin market by unveiling JPYSC, a yen-backed token issued by SBI Shinsei Trust Bank.

The trust bank's involvement means that JPYSC will be subject to stricter regulations and oversight, including direct yen reserves and full compliance with Japan's Payment Services Act. This is in contrast to existing stablecoins like JPYC, which operate as prepaid payment instruments and do not meet the same regulatory standards.

JPYSC is being developed by SBI VC Trade and Startale Group, a Web3 firm with ties to Sony that is behind the Astar Network. The token will be distributed through a licensed crypto exchange and is expected to launch in Q2 2026 pending regulatory approval.