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BlackRock Financial Management, BlackRock Japan, SBI Holdings and Startale Group signed a memorandum of understanding to explore linking tokenized money market funds with SBI's Japanese yen stablecoin, JPYSC. The companies will study the connection across technology and infrastructure, business and distribution, and regulation and market development.
Why it matters
The agreement places a major global asset manager alongside Japanese financial and blockchain firms as Japan builds rails for onchain finance. The collaboration will examine technical requirements, potential business models and distribution opportunities using the partners' networks and market access. It is also designed to remain open to financial institutions and businesses in Japan and internationally.
Japan established its stablecoin framework through amendments to the Payment Services Act in 2022, which took effect a year later. Fiat-backed stablecoins are classified as Electronic Payment Instruments, with issuance limited to licensed banks, trust companies and registered money transfer services.
Market impact
BlackRock launched its tokenized BUIDL fund in 2024. The fund has grown to around $2.17 billion in US Treasurys, overnight repos and cash under management, giving the partnership a direct connection to one of the largest tokenized fund products in the market.
SBI launched JPYSC with Startale in June, with SBI Shinsei Trust Bank managing issuance and SBI VC Trade handling distribution. Yoshitaka Kitao, SBI's chairman and president, said the shift to onchain finance is becoming an unavoidable global trend and that Japan must prepare early. The next milestones are the technical design, distribution model and regulatory assessment needed to determine whether tokenized cash products can move between institutional finance and yen-based digital settlement.
Frequently asked questions
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What are BlackRock, SBI and Startale exploring?
They are exploring a connection between tokenized money market funds and SBI's Japanese yen stablecoin, JPYSC. The work is covered by a memorandum of understanding.
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Which areas will the proposed collaboration cover?
The partners will examine technology and infrastructure, business and distribution, and regulation and market development.
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How large is BlackRock's BUIDL tokenized fund?
BUIDL has grown to around $2.17 billion in US Treasurys, overnight repos and cash under management.
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Who issues and distributes JPYSC?
SBI Shinsei Trust Bank manages JPYSC issuance, while SBI VC Trade, a licensed crypto exchange, handles distribution.
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How does Japan regulate fiat-backed stablecoins?
Japan classifies fiat-backed stablecoins as Electronic Payment Instruments. Issuance is limited to licensed banks, trust companies and registered money transfer services.
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