BlackRock, SBI and Startale Sign MOU to Study Settling Tokenized Funds in JPYSC
Key Takeaways
- •BlackRock, SBI Holdings and Startale Group signed a memorandum of understanding dated October 26 to study whether tokenized money market fund shares can be settled in JPYSC, a yen-denominated stablecoin the partners launched in June.
- •The memorandum is structured as a feasibility study, not a commitment to operate yen-stablecoin settlement, and any implementation will depend on the study's findings.
- •BlackRock, the world's largest asset manager, entered the tokenized fund segment in March 2024 with BUIDL, a tokenized institutional liquidity fund issued on Ethereum that has become a leading product in the tokenization market.
- •SBI Holdings, a Tokyo-listed financial services group, is among Japan's most active traditional financial institutions in digital assets, while Startale Group is a Web3 venture company with a close business partnership with SBI.
- •Japan's amended Payment Services Act, effective June 2023, created a legal framework allowing licensed entities to issue fiat-backed, yen-pegged stablecoins, under which JPYSC is designed for yen-denominated settlement.
BlackRock, SBI Holdings and Startale Group have signed a memorandum of understanding to examine whether shares of tokenized money market funds can be settled in JPYSC, a yen-denominated stablecoin that the partners launched in June.
The memorandum, dated October 26, is a four-party agreement, with BlackRock, SBI Holdings and Startale Group named as participants in the announcement. The arrangement is framed as a feasibility study, under which the parties will assess the use of the yen stablecoin as a settlement vehicle for tokenized fund shares. As such, the agreement covers an examination of the question rather than a commitment to operate yen-stablecoin settlement, with any outcome dependent on the study's findings.
Context on the Parties and the Market
BlackRock, the world's largest asset manager, has been building a presence in tokenized funds. The firm entered the segment in March 2024 with the launch of BUIDL, its tokenized institutional liquidity fund issued on Ethereum, which has since become one of the most prominent products in the tokenization market.
Settlement is a core operational layer for tokenized funds: when shares are issued, redeemed or traded, cash has to move between participants, and the asset used for that leg is one of the practical design questions these products face. Assessing a yen-denominated stablecoin for that role is the specific question the memorandum sets out to examine.
SBI Holdings, a Tokyo-listed financial services group, is among Japan's most active traditional financial institutions in digital assets. Startale Group, a Web3 venture company, has maintained a close business partnership with SBI Holdings.
Japan introduced a legal framework for fiat-backed stablecoins through amendments to its Payment Services Act that took effect in June 2023, allowing licensed entities to issue yen-pegged tokens. JPYSC, the stablecoin launched by the partners in June, is designed for yen-denominated settlement. The study's conclusions, and whether they lead to live settlement arrangements, remain open questions.
This content was first published on COINOTAG: https://en.coinotag.com/blackrock-sbi-startale-tokenized-fund-jpysc-mou
