Are stablecoins safe?

A stablecoin is only as safe as its issuer, its reserves, and its redemption rights. Ask who issues it, what backs it, whether reserves are verified and segregated, whether you can redeem at par, and which regulator supervises it. Stablecoins are not bank deposits and are not covered by deposit insurance.

What is the difference between a stablecoin and a CBDC?

A stablecoin is issued by a private, regulated company and backed by reserves that company holds. A central bank digital currency (CBDC) is issued directly by a central bank. JPYSC is a stablecoin, not a CBDC.

What is the difference between a trust-type and a funds-transfer-type stablecoin?

A trust-type stablecoin is issued by a trust bank or trust company, with the backing yen held as trust property, and has no ¥1,000,000 transfer limit. A funds-transfer-type stablecoin is issued by a licensed funds-transfer provider and is subject to a ¥1,000,000 limit per transfer. JPYSC is trust-type.

What Is a Yen Stablecoin? JPYSC and Japan's Trust-Type Model

A yen stablecoin is a digital token issued on a blockchain and designed to be worth exactly one Japanese yen. It is backed by yen held in reserve and can be redeemed for yen at par. It lets people and businesses hold and move yen on blockchains the same way dollar stablecoins move dollars, around the clock and without banking hours.

JPYSC is Japan's first trust-type yen stablecoin*. It is issued by SBI Shinsei Trust & Banking, distributed by SBI VC Trade, and built with Startale Group. This article explains what a stablecoin is, how a yen stablecoin works, how Japan regulates them, and where JPYSC fits.

What is a stablecoin?

A stablecoin is a digital currency that holds a steady value against a reference asset, usually a national currency. One token is designed to equal one unit of that currency, so it moves like money rather than like a volatile crypto asset such as Bitcoin or Ether.

Most stablecoins are pegged to the US dollar. They work through issuance and redemption: when a user pays the issuer one unit of currency, the issuer mints one token. When the user returns the token, the issuer redeems it for the same amount and takes the token out of circulation. The money received is held as reserves, so every token in circulation is backed by real currency.

Stablecoins matter because they bring the stability of money to the speed of blockchains. Transfers can clear in minutes at any hour, settle directly between parties, and can be programmed into applications.

How a yen stablecoin works

A yen stablecoin applies the same model to the Japanese yen. The issuer receives yen, holds it in reserve, and mints one token per yen. Holders can redeem tokens for yen at par through the issuer or its distributor.

Three things determine whether a yen stablecoin is trustworthy:

Who issues it. A licensed bank, trust company, or funds-transfer provider, supervised by a regulator.
What backs it. Yen reserves that are fully funded, verified, and legally separated from the issuer's own balance sheet.
Whether you can redeem it. A clear right to convert one token back into one yen.

JPYSC is fully backed by trust assets held at SBI Shinsei Trust & Banking. Because the reserves are trust property, they are segregated from the issuer's and distributor's own assets.

How Japan regulates stablecoins

Japan regulates fiat-pegged stablecoins as Electronic Payment Instruments under the Payment Services Act, with rules in force since June 2023. Japan was one of the first major economies to put a clear legal framework around stablecoins, which is why yen stablecoins are launching from regulated institutions rather than from offshore issuers.

The law allows three kinds of issuers: banks, trust companies, and licensed funds-transfer providers. Only registered intermediaries may distribute stablecoins to users, under Financial Services Agency (FSA) supervision.

The most important distinction is between two types:

Funds-transfer type. Issued by a licensed funds-transfer provider. Subject to a ¥1,000,000 limit per transfer.
Trust type. Issued by a trust bank or trust company. The backing yen is held as trust property. No ¥1,000,000 limit on holding, trading, or transfers.

JPYSC is a trust-type stablecoin, classified as a specified trust beneficiary right under the Payment Services Act. That is why JPYSC carries no ¥1,000,000 cap and is suited to enterprise-scale settlement.

Why the yen needs a stablecoin

The yen is one of the world's most traded currencies, but until 2026 there was no regulated yen stablecoin built for large-value settlement on blockchains, where almost all stablecoin value is denominated in US dollars.

A yen stablecoin closes that gap in two directions. Japanese businesses can settle in their own currency onchain instead of routing through dollars. Global markets gain a credible non-dollar unit for foreign exchange, treasury management, and the settlement of tokenized assets. The yen is also among the world's lowest-cost funding currencies, which makes yen-denominated lending and trading onchain a natural institutional use.

JPYSC: Japan's first trust-type yen stablecoin

JPYSC launched on Ethereum on June 24, 2026. It is the first yen stablecoin in Japan issued under the trust-type model*, with a trust bank holding the backing assets.

Issuer: SBI Shinsei Trust & Banking, a licensed Japanese trust bank.
Distributor: SBI VC Trade, a registered Electronic Payment Instrument operator.
Technology: Startale Group, the designated core partner, leads technical development and ecosystem growth.
Peg: 1 JPYSC = 1 yen, fully backed by trust assets, redeemable through SBI VC Trade.
Network: Ethereum at launch. Support for additional blockchains may be added in the future.
Official contract: 0x6781d5631BFe47432b089e64e3EaB3b6eDd26177, as published on the official JPYSC page.

At launch, JPYSC is available inside SBI VC Trade accounts. Transfers to external wallets are not yet open.

What you can do with a yen stablecoin

Once JPYSC circulates on public blockchains, the use cases named in the launch announcement include:

Onchain foreign exchange. Yen and dollar stablecoin pools that can settle 24 hours a day.
Institutional lending and carry trades. Regulated yen borrowing and lending markets onchain.
Tokenized-asset settlement. Paying for tokenized stocks, bonds, real estate, and fund interests in yen.
Domestic payments. Retail and merchant settlement through Japanese payment networks.
Cross-border remittance. Faster, cheaper, more transparent international transfers.
OTC and institutional liquidity. Deep liquidity for large transactions through regulated venues.

Startale App plans to support JPYSC once it circulates on public blockchains. For how the yen stablecoin fits into the wider system, see What is onchain finance?

How to get JPYSC today

Buy JPYSC 1:1 for yen through an SBI VC Trade account. SBI VC Trade is the only registered Electronic Payment Instruments Exchange Service Provider in Japan (as of June 24, 2026). According to SBI VC Trade's JPYSC page, trading is available 24 hours a day, 365 days a year except during maintenance, buy and sell prices are fixed at 1 JPYSC = 1 yen with no spread, and JPYSC is redeemed for yen at 1:1 through the same account.

Questions about JPYSC itself, such as the transfer cap, the backing assets and how to get it, are answered in the JPYSC FAQ (in Japanese).

* As of June 24, 2026, per the companies' own research: the first stablecoin issued under a trust-type scheme among yen-denominated stablecoins classified as Electronic Payment Instruments under Japan's Payment Services Act.

Frequently asked questions

What is a yen stablecoin?: A yen stablecoin is a blockchain token designed to be worth exactly one Japanese yen, backed by yen reserves and redeemable for yen. It lets people and businesses hold and move yen on blockchains the same way dollar stablecoins move dollars. JPYSC is a yen stablecoin issued by SBI Shinsei Trust & Banking.
What is a stablecoin?: A stablecoin is a digital currency issued on a blockchain and designed to hold a steady value against a reference asset, usually a national currency such as the US dollar or the Japanese yen. Each token is meant to be worth exactly one unit of that currency.
Are stablecoins safe?: A stablecoin is only as safe as its issuer, its reserves, and its redemption rights. Ask who issues it, what backs it, whether reserves are verified and segregated, whether you can redeem at par, and which regulator supervises it. Stablecoins are not bank deposits and are not covered by deposit insurance.
What is the difference between a stablecoin and a CBDC?: A stablecoin is issued by a private, regulated company and backed by reserves that company holds. A central bank digital currency (CBDC) is issued directly by a central bank. JPYSC is a stablecoin, not a CBDC.
What is the difference between a trust-type and a funds-transfer-type stablecoin?: A trust-type stablecoin is issued by a trust bank or trust company, with the backing yen held as trust property, and has no ¥1,000,000 transfer limit. A funds-transfer-type stablecoin is issued by a licensed funds-transfer provider and is subject to a ¥1,000,000 limit per transfer. JPYSC is trust-type.