SBI Group Launches JPYSC Stablecoin, Does It Use XRP Ledger?

• Japan’s SBI Group and Singapore’s Startale Group launched the JPYSC, a trust-type stablecoin pegged 1:1 to the yen.
• The token most likely runs under SBI and Startale’s Strium L1 blockchain or Ethereum in its initial rollout.
• SBI’s long-term link with Ripple will likely put the JPYSC on the XRP Ledger once it undergoes public expansion.

SBI Group and Startale Group soft-launched the JPYSC stablecoin. The digital asset is pegged 1:1 to the yen and features a trust-type design.

The token is initially exclusive to SBI VC Trade accounts, but the partners eye its public rollout in the near future.

Key Features of SBI Group’s JPYSC Stablecoin

On Wednesday, SBI Group, a financial services company headquartered in Japan, announced the limited launch of the JPYSC stablecoin. The parties include SBI Holdings’ subsidiaries, namely SBI Shinsei Bank, Ltd., SBI Shinsei Trust Bank, Ltd., and SBI VC Trade Co., Ltd.

The digital asset maintains a 1:1 peg to the Japanese yen. SBI jointly developed it with Startale, a Singapore-headquartered Web3 infrastructure and technology company. Meanwhile, SBI Shinsei Trust Bank serves as its issuer.

JPYSC stands out from typical stablecoins like Tether’s USDT and Circle’s USDC with its trust-type design. A trust bank manages its underlying assets and is not subject to a 1 million yen limit for retention and transfers.

Additionally, the stablecoin operates under the rails of Japan’s revised Payment Services Act, ensuring its compliance with Japan’s strict consumer protection regimes. It possesses legal protection linked to segregated, bank-managed reserves.

Due to its use of blockchain technology, the asset offers significantly lower transaction costs compared to traditional fiat or online transactions. It also provides near-real-time settlement and can handle a large volume of transfers.

SBI and Startale aim to expand the JPYSC’s range beyond the SBI VC Trade platform to a broader global audience via a public blockchain once they finalize the necessary legal and regulatory filings. Moreover, they plan to enable its exchange with US dollar-denominated stablecoins and other instruments in the future.

Does JPYSC Use XRP Ledger?

SBI never mentioned the JPYSC’s underpinning blockchain in the notice. Given its long-term partnership with Ripple and links with XRP, some have immediately assumed it may be using the XRP Ledger (XRPL).

However, it’s worth noting that SBI’s partner for JPYSC, Startale, is a core developer deeply rooted in the Ethereum (ETH) and Polkadot (DOT) ecosystems. The two also partnered in February to launch Strium Network, a Layer 1 (L1) blockchain specially tailored for real-world asset (RWA) tokenization, taking XRPL out of the equation at least for now.

While JPYSC is guaranteed to run on Strium and Ethereum – probably even Polkadot – SBI’s foundational relationship with Ripple means that XRPL remains a highly probable venue for its cross-border remittance and B2B settlement use cases once it undergoes public expansion.

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