SBI Group Joins Japan's Megabank JPY Stablecoin Race

Core Insights - Japan's largest banking groups are actively pursuing the development of JPY-backed stablecoins, with all major "megabanks" now entering the market since the first stablecoin was launched in October 2023 [1][2][6] - SBI Group has announced plans to launch its own stablecoin in the second quarter of 2026, joining Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho in this competitive landscape [1][2] Regulatory Framework - The groundwork for yen stablecoins was established in 2023 through amendments to the Payment Services Act (PSA), which created a legal framework for their issuance and redemption [2] - JPYC Inc. was the first issuer to receive regulatory approval, marking the beginning of Japan's stablecoin race [2] Competitive Landscape - A collaboration among Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho received support from the Financial Services Agency's fintech hub, enhancing their project [3] - The entry of SBI into the stablecoin market increases competition among Japan's megabanks [3] SBI Group's Strategy - SBI has partnered with Startale Group to develop its stablecoin, positioning it as an institutional settlement rail for foreign exchange and tokenized asset flows [4] - The planned stablecoin aims to provide a yen-denominated alternative in a market that is predominantly focused on U.S. dollar assets [4] SBI's Business Focus - SBI is primarily focused on trading and investment rather than retail banking, which differentiates it from traditional megabanks [5] - The group has a significant presence in Japan's digital asset and blockchain ecosystem, including a major crypto exchange and a joint venture with Ripple [5][7] Tokenization Initiatives - In addition to stablecoins, SBI is also focusing on tokenized real-world assets (RWA) and has entered a joint venture with Startale to create an on-chain trading platform for tokenized stocks and other RWAs [7]