SBI Holdings and Startale Group team up to develop afully regulated yen-denominated stablecoin for global settlement. The initiative aims to bridge traditional finance andblockchain-based payments, positioning Japan to challenge dollar dominance inthe $300 billion stablecoin market.Building a Regulated Digital YenThe two companies have signed a memorandum ofunderstanding to co-develop a compliant, tokenized yen designed for enterpriseuse and cross-border settlements."The transition to a 'Token Economy' where allreal-world assets are tokenized and tokens permeate society as a means ofsettlement - is now an irreversible societal trend,” said Yoshitaka Kitao,Representative Director, Chairman & President of SBI Holdings. “By jointly issuing a Yen-denominated stablecoin withthe Startale Group to serve as the foundation of this infrastructure, and bycirculating it both domestically and globally, we aim to dramaticallyaccelerate the movement toward providing digital financial services that arefully integrated with traditional finance.”Startale Group and SBI Holdings partner to develop a fully compliant Yen stablecoin for the global market.https://t.co/Pz4ASnuMer— Startale 💿 (@StartaleGroup) December 16, 2025The project is framed under Japan’s Financial ServicesAgency (FSA) regime for stablecoins and aims to go live in the second quarterof 2026, pending regulatory approval.Technology Meets Traditional BankingUsing Startale’s blockchain and smart contractexpertise alongside SBI’s financial infrastructure, the yen stablecoin willreportedly function as a Type 3 Electronic Payment Instrument, free from thedomestic ¥1 million transfer limit. This structure allows for scalablesettlement flows across both retail and institutional networks.Startale will lead the token’s technical development,focusing on smart contract architecture, APIs, and compliance mechanisms.Shinsei Trust & Banking, part of the SBI Group, will handle issuance andredemption, while SBI VC Trade manages circulation under its crypto assetexchange license.Read more: Visa Brings Stablecoins to Main Street Banking With U.S. RolloutThe initiative complements Japan’s broader push towardcompliant stablecoins and tokenized assets, part of the FSA’s PaymentInnovation Project. Authorities have encouraged regulated experimentation,backing pilots by major banks such as Mitsubishi UFJ, Sumitomo Mitsui, andMizuho.Japan’s Digital Currency PushThrough this new collaboration, SBI and Startale seekto create interoperability between blockchain-native assets and traditionalfinance, creating a base layer for on-chain settlement, cross-border payments,and real-world asset (RWA) tokenization.Even as SBI expands into stablecoins, security remaina challenge. Recently, SBI Crypto reportedly suffered losses of about $21million following a blockchain exploit. The incident was first flagged by blockchaininvestigator ZachXBT, who said the activity bears hallmarks consistent withsuspected North Korean state-backed hacking groups. According to ZachXBT, the exploit involved suspicious outflows ofmultiple cryptocurrencies from wallets linked to SBI Crypto, including Bitcoin,ether, Litecoin, Dogecoin and Bitcoin Cash. This article was written by Jared Kirui at www.financemagnates.com.