Startale Japan Co., Ltd. has launched Japan's first digital corporate bond that pays both scheduled interest and principal redemption in JPYSC, a yen-denominated stablecoin issued by SBI Shinsei Trust Bank. The domestic-only pilot aims to test onchain settlement in traditional corporate finance. This initiative comes amid rapid global stablecoin growth, with payment volumes reaching $390 billion in 2025, as financial institutions explore regulated digital currencies under frameworks like Japan's Payment Services Act.
Startale Japan's digital corporate bond
- ▪Startale Japan Co., Ltd. announced a digital corporate bond on October 6, 2026, in Tokyo, which will pay both scheduled interest and final principal redemption in the yen-denominated stablecoin JPYSC.
- ▪The total issuance size, coupon rate, maturity date, and individual investment limits for the Startale Japan Co., Ltd. digital corporate bond were not disclosed in the October 2026 announcement.
- ▪Startale Group CEO Sota Watanabe stated that the Startale Japan Co., Ltd. bond issuance serves as a pilot to test JPYSC for actual interest and principal payments to create new options for corporate fundraising.
- ▪The Startale Japan Co., Ltd. digital corporate bond offering is limited to individual investors and companies in Japan and is not available to overseas investors.
- ▪The domestic-only restriction on the Startale Japan Co., Ltd. bond allows Japanese regulators to observe stablecoin settlement functions without immediately extending the experiment to global markets.
Structure and regulation of JPYSC
- ▪JPYSC was developed through a partnership between SBI Group and Startale Group, with SBI VC Trade serving as the issuance trustor leading its issuance and distribution, and Startale Group providing the underlying technology.
- ▪The JPYSC stablecoin is classified as a Type 3 Electronic Payment Instrument under Japan’s Payment Services Act.
- ▪JPYSC is a yen-denominated trust-type stablecoin designed to maintain a 1:1 value with the Japanese yen, with SBI Shinsei Trust Bank issuing the stablecoin and managing its backing trust assets.
Mastercard's stablecoin initiatives
- ▪Mastercard adopted a stablecoin platform to enable capabilities for sending, receiving, holding, converting, and settling value across digital currencies.
- ▪According to Mastercard Executive Vice President Pratik Khowala, 2025 overall stablecoin payment volume reached $390 billion (more than doubling), and cross-border payments on stablecoin rails reached $135 billion, a 64% year-on-year increase.
Debatable claims
- ▪Restricting stablecoin bond pilots to domestic investors is a prudent regulatory strategy
- ▪Corporate bond investors should prefer stablecoin payouts over traditional fiat currency
- ▪Stablecoins are mature enough to serve as the primary settlement mechanism for corporate debt
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