USD
BlackRock, SBI and Startale Explore Yen Stablecoin Link for Tokenized Funds
MOU Centers on JPYSC Settlement, Infrastructure, Distribution and Regulation
TL;DR
- BlackRock, SBI Holdings and Startale Group signed an exploratory agreement around tokenized money market funds and the JPYSC yen stablecoin.
- The partners will assess technical infrastructure, business and distribution opportunities, and regulatory requirements.
- No live product, participating fund, blockchain or commercial launch date has been confirmed.
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BlackRock, the $15.5 trillion asset manager, signed a memorandum of understanding with SBI Holdings and Startale Group on October 27, 2026, to explore connecting tokenized money market funds with JPYSC, a regulated yen-denominated stablecoin.
The agreement involves BlackRock Financial Management, BlackRock Japan, SBI Holdings and Startale. It remains exploratory, with no live product, participating fund, selected blockchain or commercial launch date announced.
Partners Examine Tokenized Fund Settlement With JPYSC
The partnership brings together BlackRock's asset-management capabilities, SBI's financial services network and distribution channels, and Startale's blockchain development work. The companies plan to examine three areas: technological infrastructure, business and distribution opportunities, and regulatory requirements for connecting tokenized money market funds with JPYSC. They also plan to engage financial institutions and other businesses about broader cooperation, with the stated goal of supporting onchain finance in Japan and other markets.
Money market funds primarily invest in short-term financial instruments, while tokenization represents ownership interests through blockchain-based records. Connecting tokenized fund shares with a yen stablecoin could make it easier for eligible institutions to move between digital investments and digital cash without relying entirely on conventional settlement processes. The arrangement would also examine how yen-based payments could interact with tokenized financial assets.
SBI Chairman Yoshitaka Kitao said Japan should “prepare early and build the foundations for the next generation of financial markets” as finance moves onchain. Startale CEO Sota Watanabe called connecting JPYSC with tokenized money market funds “an important step toward building the foundations of onchain finance.”
JPYSC Provides the Yen-Denominated Settlement Layer
JPYSC is a yen-denominated trust-type stablecoin issued through SBI Shinsei Trust Bank under Japan's regulated trust-based stablecoin framework and distributed by SBI VC Trade. Developed with Startale, JPYSC is intended to support payments, settlements and transactions involving tokenized financial assets.
SBI has separately expanded its digital-finance activity through an Ondo Finance partnership focused on tokenized Japanese equities. On October 16, SBI and Startale also announced plans to explore interoperability between JPYSC and Open USD, a dollar-denominated stablecoin initiative. That effort is separate from the BlackRock agreement, although both involve connecting components of institutional digital finance.
BlackRock Brings Existing Tokenization Work
BlackRock already operates BUIDL, its tokenized liquidity fund, which has expanded to Avalanche and other blockchain networks. Its institutional tokenization work has also included stablecoin-related changes intended to accommodate digital-asset businesses, as well as BUIDL integrations showing how tokenized fund shares can interact with digital payment assets. The new agreement does not establish that BUIDL will be integrated with JPYSC.
BlackRock has separately supported tokenized portfolio products developed with Ondo Finance. SBI contributes knowledge of Japan's financial regulations and distribution infrastructure, while Startale brings blockchain-development capabilities that include infrastructure for tokenized securities. The agreement comes as financial institutions examine whether blockchain-based systems can reduce settlement friction while maintaining existing investor protections.
This article has been refined and enhanced by ChatGPT.
