BlackRock, SBI and Startale Eye Tokenized MMF Link to Yen Stablecoin

BlackRock wants its tokenized money market funds to talk to a yen stablecoin. SBI Holdings and Startale Group have signed a memorandum of understanding with BlackRock Financial Management and BlackRock Japan to explore connecting tokenized MMFs with JPYSC, SBI's yen-denominated token. Read the word "explore" literally: no integration with JPYSC has been confirmed.

The work runs on three tracks: technology and infrastructure, business and distribution, and regulation and market development. The partners plan to map the technical requirements for integration, then look at business models and distribution through their existing networks and market access. The setup is meant to stay open to other financial institutions and businesses in Japan and abroad.

"The shift to onchain finance is becoming an unavoidable global trend. If Japan is to lead this transformation rather than fall behind, we must prepare early and build the foundations for the next generation of financial markets,"

Yoshitaka Kitao, SBI Holdings

The companies laid out the next phase in a joint statement: "The next step is to develop the infrastructure, distribution channels, and regulatory frameworks needed to connect tokenized assets with stablecoins and support broader market adoption."

What JPYSC brings

JPYSC launched on June 24, 2026 as Japan's first trust-type yen stablecoin. SBI Shinsei Trust Bank issues it, and SBI VC Trade, a licensed crypto exchange, handles distribution. Reserves sit in segregated trust accounts, and the token is designated a Type III Electronic Payment Instrument.

Scale is modest. As of October 26, 2026, circulating supply was about 20.7 billion tokens, worth around $131.5 million. BlackRock's BUIDL, launched in 2024, manages around $2.17 billion on its own. JPYSC is clearly the small leg of this pairing.

The groundwork

The MOU didn't come from nowhere. In July 2026, SBI and Startale ran proofs of concept on an Ethereum testnet showing near-instant settlement and automated on-chain dividend distribution for a tokenized equity fund of about $1.3 billion. On October 16, 2026, the two joined the Open Standard alliance, whose members include BlackRock and Visa. That group is working on interoperability between JPYSC and the dollar stablecoin OUSD.

Why it matters

The pitch is simple: a tokenized MMF as the yield-bearing leg, a regulated yen stablecoin as the cash leg. Japan's rulebook is built for the second half. Payment Services Act amendments passed in 2022, in force a year later, define fiat-backed stablecoins as Electronic Payment Instruments and restrict issuance to licensed banks, trust companies and registered money transfer services.

For traders, nothing here is live. Treat it as a signal of direction, in line with BlackRock's broader onchain push, which lifted ONDO 20% when it put three portfolios onchain, rather than a tradeable catalyst. The real test is whether a distribution deal turns this MOU into actual JPYSC demand.