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- BlackRock, SBI Holdings, and Startale agreed to explore connecting tokenized funds with JPYSC.
- The memorandum of understanding focuses on examining technology, business models, and regulatory requirements.
- Eligible investors could potentially use the stablecoin when buying or redeeming fund interests.
BlackRock, SBI Holdings and Startale announced an agreement on Oct. 27 to explore connecting tokenized money market funds with the yen-denominated stablecoin JPYSC. The initiative could eventually give eligible investors a way to use digital yen alongside tokenized investments, depending on its design and regulatory requirements.
Firms to Examine Technology and Distribution
BlackRock Financial Management and BlackRock Japan signed a memorandum of understanding with SBI and Startale to study how tokenized money market funds could connect with JPYSC. The agreement sets out an exploratory process rather than a commitment to launch a specific product.
The firms plan to examine the technology and infrastructure needed for a connection, along with potential business models and distribution channels. They will also consider regulatory developments affecting stablecoins and tokenized assets.
A money market fund generally invests in short-term debt instruments. Tokenization represents interests in a fund using blockchain-based tokens, while a stablecoin is designed to track the value of an asset such as a national currency.
One possible use would be allowing eligible investors to use JPYSC when buying or redeeming tokenized fund interests, depending on the eventual design and regulatory requirements. The companies have not announced such a transaction mechanism or confirmed which fund or blockchain infrastructure an integration would use.
JPYSC Launched Through SBI VC Trade
SBI Shinsei Trust Bank issues JPYSC, which is designed to track the yen at one token per ¥1. The stablecoin launched on June 24 with initial use limited to SBI VC Trade accounts.
Startale identifies Ethereum as a supported blockchain but says JPYSC deposits and withdrawals through SBI VC Trade are currently unavailable. The company says public-chain circulation depends on clarification of legal and tax treatment and confirmation by regulators.
JPYSC uses a trust-based structure under Japan’s payment rules. In September, SBI said it had begun investing part of the assets backing the stablecoin in Japanese government securities.
SBI and Startale are also exploring a separate pilot to connect JPYSC with the dollar-denominated Open USD stablecoin. Their Oct. 16 announcement said that work did not represent the launch of a commercial service or production trading.
