BlackRock Japan Explores Yen Stablecoin JPYSC With SBI and Startale

TLDR

• BlackRock signed a memorandum of understanding with SBI Holdings and Startale Group.
• The companies will explore linking tokenized money market funds with SBI’s yen-pegged stablecoin JPYSC.
• The work will cover technology, distribution, and regulation and market development.
• JPYSC launched in June as Japan’s first trust bank-backed yen stablecoin.
• The firms may bring in more partners to grow on-chain finance in Japan and abroad.

BlackRock has signed a memorandum of understanding with SBI Holdings and Startale Group. The companies will explore connecting tokenized money market funds with JPYSC, a stablecoin pegged to the Japanese yen.

SBI Holdings is a long-time partner of Ripple. The agreement was announced on October 27 in a release from SBI Group.

What the BlackRock and SBI Agreement Covers

BlackRock Financial Management and BlackRock Japan signed the agreement. The deal combines the asset manager’s fund business with SBI’s financial services and Startale’s blockchain infrastructure.

The companies will study linking tokenized money market funds and JPYSC in three areas. These are technology and infrastructure, business and distribution, and regulation and market development.

A money market fund invests in short-term, low-risk assets. A tokenized version of the fund exists on a blockchain, which allows it to be moved and settled digitally.

The agreement is a memorandum of understanding. This means the companies have agreed to explore the idea, not launch a product yet.

The firms also said they may work with other partners. The goal is to support the growth of on-chain finance in Japan and in other markets.

What Executives Said About Tokenization

Yukiko Hashimoto, president of BlackRock Japan, said advances in digital assets, including tokenization, are opening up new possibilities for financial markets. “At BlackRock, we believe these innovations can help advance financial markets and deliver new value to investors in Japan,” Hashimoto said.

Jonathan Steel, a managing director at BlackRock Financial Management, said the work with SBI reflects a shared commitment. He said both sides want to connect traditional finance with digital asset systems.

Yoshitaka Kitao, chairman and president of SBI Holdings, said the shift to on-chain finance is “becoming an unavoidable global trend.”

“If Japan is to lead this transformation rather than fall behind, we must prepare early and build the foundations for the next generation of financial markets,” Kitao said.

SBI launched JPYSC with Startale in June of this year. It was Japan’s first yen stablecoin backed by a trust bank.

SBI Shinsei Trust Bank manages the issuance of the stablecoin. SBI VC Trade, a licensed crypto exchange, handles distribution.

SBI also works with Ripple in Japan. Ripple chose SBI Group to launch its RLUSD stablecoin in the country through SBI VC Trade.

In a separate effort, SBI and Startale joined the Open Standard alliance. Through that group, they are exploring how JPYSC can work with the OUSD stablecoin.

Interest in tokenized real-world assets, including money market funds, has grown as digital asset rules develop in several countries. Firms are building systems that combine tokenized assets with stablecoins, which also require custody services to protect fund reserves.

SBI and Startale said the agreement with BlackRock is meant to support the development of on-chain finance in Japan and around the world. The announcement did not include a launch date for any product.

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