Key highlights:
- SBI Group tested JPYSC’s capabilities on the settlement of tokenized securities
- The PoC included DigitFT and Startale Group, with parties recording impressive success levels
- SBI Holdings has teamed up with the Solana Foundation to build expansive on-chain financial markets
SBI Group has completed a proof of concept (PoC) demonstrating how Japan’s first trust bank-backed yen stablecoin, JPYSC, could power the settlement of tokenized securities. The move comes barely a month after JPYSC’s launch, with SBI Group racing to advance on-chain settlements beyond Japan.
Testing the full lifecycle of tokenized securities
SBI Group tapped Singapore-regulated tokenization platform DigiFT and blockchain infrastructure provider Startale Group for the PoC. According to an official statement, parties used an Ethereum testnet to test instant settlement for tokenized securities and automated dividend payments using JPYSC.
Three weeks ago, SBI Group and Startale announced JPYSC as Japan’s first trust bank-backed yen stablecoin. At the time, Startale Group founder Sota Watanabe hinted that JPYSC will be used for tokenized assets and on-chain payments for AI agents.
The first PoC, simulating near-instant settlement for subscriptions into tokenized Japanese equity funds using the new stablecoin. The partners disclosed that replacing conventional multi-day settlement with on-chain transactions will reduce settlement risk and support programmable payment flows.
Meanwhile, the second PoC tested automatic on-chain dividend distribution. Per the announcement, the partners leaned on smart contracts to calculate and distribute payouts to eligible token holders in the test environment.
“The future of capital markets will be beyond simply tokenizing assets,” said Watanabe. “It will bring the entire transaction lifecycle on-chain.”
Leaning on the successes of the PoCs, SBI Group and DigiFT are advancing plans to tokenize the SBI Japan High Dividend Equity Fund with $1.2 billion in assets under management (AUM).
Furthermore, SBI Group, DigiFT, and Startale confirmed plans to explore integrating tokenized Japanese equities with institutional decentralized infrastructure. The statement pointed to protocols like Morpho and Gauntlet, with parties eyeing on-chain lending and collateralization within regulated frameworks.
SBI burrows deeper into on-chain infrastructure
Amid the experiments with JPYSC, SBI Holdings has also inked a deal with the Solana Foundation to build the infrastructure for on-chain financial markets. Under the partnership, the Solana Foundation will own a stake in SBI Holding’s digital asset unit, to be renamed SBI Solana Global.
The expanded joint venture will focus on the distribution of tokenized RWAs while seeking new markets outside Japan. As part of its efforts, SBI Solana Global will develop an on-chain cross-border payment infrastructure for the Asia-Pacific region.
SBI is leaning on Japan’s robust legal framework for digital assets to advance its expansionist ambitions. The company predicted that Japan would become the leading hub for on-chain finance in Asia in the coming months.
Source: Four Pillars
Last month, the company probed deeper with an agreement to purchase cryptocurrency exchange Bitbank for nearly $289 million, consolidating its position as the leading operator in Japan’s digital asset space.
