Key Takeaways
- • BlackRock, SBI Holdings, Startale Group signed a memorandum of understanding on Oct. 26 to explore linking tokenized money market funds to JPYSC, a yen stablecoin issued by SBI Shinsei Trust Bank.
- • JPYSC launched in June 2026 under Japan's trust-type model, which avoids the ¥1 million balance and transfer cap that applies to fund-transfer-type tokens such as JPYC.
- • The MOU sets no launch date or committed product; work is split across technology and infrastructure, business and distribution, and regulation and market development, and the effort is open to other institutions in Japan and abroad.
- • BlackRock's BUIDL tokenized Treasury fund, launched in 2024, manages around $2.17 billion in U.S. Treasurys, repurchase agreements and cash.
Summary
BlackRock Financial Management and BlackRock Japan have signed a memorandum of understanding with SBI Holdings and Startale Group to study whether tokenized money market funds, which are fund shares issued as blockchain tokens, can settle against JPYSC, Japan's trust bank-backed yen stablecoin. The MOU was signed on October 26, according to the report. SBI chairman Yoshitaka Kitao said "the shift to onchain finance is becoming an unavoidable global trend," adding that Japan must prepare early to lead rather than fall behind.
The rationale is that money market funds are where corporations and institutions park idle cash. Settling them on 24/7 rails would allow a Japanese treasurer to move between yen and a yield-bearing fund without waiting for banking hours. JPYSC was rolled out by SBI and Startale in June 2026. It is issued by SBI Shinsei Trust Bank under Japan's trust-type model, which the report says avoids the ¥1 million cap on balances and transfers that applies to fund-transfer-type tokens such as JPYC.
The partners plan three workstreams: technology and infrastructure, covering how tokenized fund shares and JPYSC would interact onchain; business and distribution, covering who sells the product and to whom; and regulation and market development, covering what Japan's rules allow. The announcement contains no timeline, and the MOU does not commit the parties to a finished product. The collaboration is open to other financial institutions in Japan and internationally.
The report links the deal to SBI's relationship with Ripple. In June 2026, SBI VC Trade began distributing Ripple's RLUSD stablecoin after Japan's Financial Services Agency approved it as an electronic payment instrument. The report notes that the BlackRock MOU does not mention Ripple, RLUSD or XRP, and that the connection runs solely through SBI. It also cites recent reporting that Ripple received final approval for a U.S. national trust bank charter, and that Aviva placed $66 million into a tokenized sterling fund on the XRP Ledger.
The rationale is that money market funds are where corporations and institutions park idle cash. Settling them on 24/7 rails would allow a Japanese treasurer to move between yen and a yield-bearing fund without waiting for banking hours. JPYSC was rolled out by SBI and Startale in June 2026. It is issued by SBI Shinsei Trust Bank under Japan's trust-type model, which the report says avoids the ¥1 million cap on balances and transfers that applies to fund-transfer-type tokens such as JPYC.
The partners plan three workstreams: technology and infrastructure, covering how tokenized fund shares and JPYSC would interact onchain; business and distribution, covering who sells the product and to whom; and regulation and market development, covering what Japan's rules allow. The announcement contains no timeline, and the MOU does not commit the parties to a finished product. The collaboration is open to other financial institutions in Japan and internationally.
The report links the deal to SBI's relationship with Ripple. In June 2026, SBI VC Trade began distributing Ripple's RLUSD stablecoin after Japan's Financial Services Agency approved it as an electronic payment instrument. The report notes that the BlackRock MOU does not mention Ripple, RLUSD or XRP, and that the connection runs solely through SBI. It also cites recent reporting that Ripple received final approval for a U.S. national trust bank charter, and that Aviva placed $66 million into a tokenized sterling fund on the XRP Ledger.
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