JPYSC Advances Reserve Asset Management with Japanese Government Bonds

SBI Shinsei Trust Bank, Ltd. and SBI VC Trade Co., Ltd. announced that they have begun investing JPY 1 billion of the trust assets backing JPYSC, a yen-denominated trust-type stablecoin, in short-term Japanese government bonds (JGBs).

Startale is jointly developing JPYSC with the SBI Group, supporting the development of its technology infrastructure and expanding its potential applications across on-chain financial markets. This initiative leverages recent regulatory changes that have expanded the permissible management of stablecoin reserve assets beyond deposits to include certain short-term government bonds and other eligible assets.

By utilizing highly creditworthy and liquid Japanese government bonds while maintaining the liquidity required for smooth redemptions, the initiative represents an important step toward connecting on-chain digital money with traditional yen-denominated financial assets.

Building the Foundation for Onchain Yen

JPYSC is a Type 3 Electronic Payment Instrument designed to maintain a 1:1 value with the Japanese yen. SBI Shinsei Trust Bank serves as the issuer and is responsible for the management and investment of the trust assets, while SBI VC Trade serves as the issuer entrustor and Electronic Payment Instruments Exchange Service Provider, driving the issuance and distribution of JPYSC.

JPYSC is expected to support a broad range of use cases, including domestic and cross-border payments and remittances, on-chain foreign exchange markets, and settlement for real-world assets (RWA) and tokenized assets.

Startale will continue working closely with the SBI Group to advance JPYSC’s technology infrastructure and develop new use cases, expanding opportunities for the Japanese yen to be utilized on-chain across payments and remittances, FX, RWAs, tokenized assets and other emerging financial applications.

Read the announcement from SBI Shinsei Trust Bank and SBI VC Trade