BlackRock, SBI Holdings and Startale Group have signed a memorandum of understanding to explore linking tokenized money market funds with JPYSC, SBI's Japanese yen-denominated stablecoin, the companies announced on October 27.
The collaboration will focus on three areas: technology and infrastructure, business and distribution, and regulation and market development. The partners intend to assess the technical requirements for integrating tokenized MMFs with JPYSC, examine business models and distribution opportunities, and consider relevant regulatory developments for tokenized assets and stablecoins in Japan.
The initiative is designed to be open to other financial institutions and businesses in Japan and internationally. SBI Holdings' Yoshitaka Kitao said the shift to onchain finance is becoming an unavoidable global trend and that Japan must prepare early to lead the transformation. BlackRock Japan's Yukiko Hashimoto said digital asset innovations can deliver new value to investors in Japan, while Startale Group CEO Sota Watanabe described the connection as an important step toward developing the foundations of onchain finance.
Japan established a stablecoin legal framework through amendments to the Payment Services Act in 2022, which took effect in 2023 and defined fiat-backed stablecoins as Electronic Payment Instruments. Issuance is limited to licensed banks, trust companies and registered money transfer services. SBI launched JPYSC with Startale in June as Japan's first trust bank-backed yen stablecoin; SBI Shinsei Trust Bank manages issuance and SBI VC Trade handles distribution.
BlackRock's tokenized fund BUIDL, launched in 2024, has grown to roughly $2.17 billion in U.S. Treasurys, overnight repos and cash under management. The new MOU remains exploratory, with no specific product launch, integration timeline or commercial deployment announced.
