BlackRock Teams Up With SBI on Japanese Yen Stablecoin Project

BlackRock Explores Onchain Finance in Japan

Global asset management leader BlackRock has partnered with Japanese financial conglomerate SBI Holdings and blockchain developer Startale Group. Together, they plan to explore how tokenized money market funds can settle using JPYSC, a trust bank-backed stablecoin pegged to the Japanese yen.

The collaborative effort was formalized on October 26, 2026, with the signing of a Memorandum of Understanding (MOU). Four key entities are involved in the initiative: SBI Holdings, Startale Group, BlackRock Financial Management, and BlackRock Japan.

How Tokenized Money Market Funds Work

Money market funds (MMFs) are traditional financial vehicles where corporations and institutions store excess cash to maintain liquidity while earning yield. Tokenizing these funds converts ownership shares into digital tokens recorded on a blockchain network.

By connecting tokenized funds with a stablecoin operating 24 hours a day, financial managers can transfer capital between Japanese yen and yield-bearing assets at any time without waiting for normal banking operation hours.

The shift to onchain finance is becoming an unavoidable global trend. Japan must prepare early to lead rather than fall behind.

Three Main Areas of Focus

The project partners will divide their work across three distinct streams, though no official launch timeline or fixed deadlines have been announced yet:

• Technology and Infrastructure: Designing how tokenized fund shares interact onchain with the JPYSC stablecoin.
• Business and Distribution: Identifying potential institutional clients and determining effective sales channels.
• Regulation and Market Development: Ensuring all product designs comply fully with local financial regulations in Japan.

The participating firms stated that this working group will remain open to participation from additional domestic and international financial institutions.

Understanding Japan's JPYSC Stablecoin

SBI and Startale launched the JPYSC stablecoin in June 2026. The token is issued by SBI Shinsei Trust Bank under Japan's trust-type stablecoin regulatory framework.

Unlike standard fund-transfer tokens like JPYC, which are subject to a ¥1 million transfer limit, trust-type stablecoins like JPYSC are exempt from this cap. JPYSC maintains segregated 1:1 fiat reserves to back all circulating units.

The Strategic Role of SBI and RippleXRP+1.08%

Although the MOU between BlackRock and SBI does not mention Ripple, RLUSD, or XRP directly, SBI has long served as a key regional partner for Ripple in Asia.

In June 2026, SBI VC Trade began offering Ripple's USD-denominated stablecoin, RLUSD, following regulatory clearance from Japan's Financial Services Agency (FSA). Because SBI VC Trade handles both RLUSD and JPYSC, SBI sits at the intersection of dollar stablecoins, yen stablecoins, and tokenized asset management.

In parallel developments across the digital asset space, Ripple recently received approval for a U.S. national trust bank charter. Furthermore, British asset manager Aviva committed $66 million to a tokenized sterling fund operating on the XRP Ledger.

Institutional Tokenization Trends

BlackRock brings substantial experience to this venture. Its tokenized Treasury fund, BUIDL, was introduced in 2024 and holds approximately $2.17 billion in assets, including U.S. Treasurys, cash, and repurchase agreements.

Similar institutional initiatives are underway elsewhere. For example, JPMorgan recently introduced tokenized money market funds on the SolanaSOL-1.21% network for U.S. institutional investors, and central banks in Asia are working on cross-border stablecoin connectivity arrangements.

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